KRA Issues Clarification on Filing Tax Returns

KRA has clarified on online reports about the reconfiguration of the iTax portal.

In an earlier story, it had been reported that KRA had abolished the keying in of tax returns for all employees as the process would entirely be handled by employers.

What the authority has done is ease the process as the country gears up to the June 30 deadline.

The system update allows the portal to auto-fill the employer information that would have required the user to key in. The only thing that you won't need to key in is employer information.

“KRA has enhanced iTax to have an auto-populated return of employment income. This has made it much easier, smoother and faster for employees whose source of income is only employment to file their returns,” a representative of the authority stated.

Futher communication from the authority stated, "The employees are only required to input data on pension and annual relief. On receipt of the P9 certificates, the employees should simply proceed and file their returns accordingly.

"This does not in any way imply that filing of tax returns has been abolished. KRA, therefore, advises all taxpayers to disregard this miscommunication and in case of any assistance or clarification, to reach out to KRA through the available channels of communication."

The taxman had on Friday issued a notice to suspend activity on the itax portal to facilitate system maintenance.

Filing of tax returns, however, is still mandatory and all persons with a KRA PIN are required to do so between January and June. Those with no source of income such as students are required to file NIL returns.

Taxpayers who will miss the June 30 deadline for filing returns face a penalty of Ksh 2,000 for individuals and Ksh 10,000 or five percent of the tax due for other entities under the Tax Procedure Act, 2015.

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