Complete Guide to Filing KRA Taxes Online 2020

  • Kenya Revenue Authority signage on a building
    Kenya Revenue Authority signage on a building
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  • This is a complete step by step guide on how to file KRA tax returns on the iTax portal. By the end, you will be able to file any type of tax return, reset your KRA iTax password and even discover how to replace your email, in case you can no longer access the one you used to register.

    Filing Individual Tax Returns on iTax

    Submission of income tax returns can be done at the comfort of your home, or office, through an online process done via the iTax portal. Here are the steps you'll need to follow:

    1. Open your browser and go to https://itax.kra.go.ke/KRA-Portal/
    2. Enter your KRA PIN, click Continue. Enter Password and Security Stamp (answer to arithmetic sum) and Click Log In
    3. Go to Returns Menu and select ITR for Employment Income Only
    4. Enter Return Period, select 'Yes' to the question 'Do you have employment income?' and Click 'Next'
    5. Under basic information, answer the questions asked appropriately and Click 'Next'
    6. Scroll to Section F, details of employment income and confirm the name and PIN of employer, Gross Pay and other allowances as per your P9 form.
    7. Scroll to Sheet M, details of PAYE deducted, confirm Employer details, Taxable salary, chargeable pay, Tax payable on taxable salary and PAYE deducted. Details can be modified as per your P9.
    8. Scroll to Section Q and capture a payment if any, made prior to the filing of the return.
    9. Scroll to Section T, Tax Computation, Enter defined/pension contribution amount (as per your P9 actual contribution by employee) and personal relief. Click 'Submit' and download the E-return acknowledgement receipt.

    Filing Nil Returns

    Nil income tax returns aid the taxman in identifying all taxpayers that fall below the taxable income, or are unemployed and earning no salary.

    To mitigate the effects of the Coronavirus pandemic on the Kenyan economy, KRA outlined various changes following the Tax Laws Amendment Bill 2020, which you can explore in detail here.

    With that said, here's a step by step guide on how to file KRA nil returns online:

    1. Log on to https://itax.kra.go.ke/KRA-Portal/ from your browser
    2. Enter your KRA PIN, click Continue. Enter Password and Security Stamp (answer to arithmetic sum) and Click Log In
    3. After logging in, scroll to the navigation bar and select ‘e-returns’, which will open a set of options. Underneath the options, scroll downwards and click on ‘file nil returns’.
    4. After Log in, update the professions menu then return to file NIL Return.
    5. On the taxpayer PIN, insert your KRA pin and on the 'Tax Obligation' option insert 'Income Tax resident.' then submit.
    6. Select Tax obligation and next fill in the returns period from and return period to will be populated obligation time frame then click submit button.
    7. If the process is successful, an acknowledgement receipt of e-returns will appear following a successful submission message.
    8. Download the returns receipt and you are done.

    Filing PAYE (Pay As You Earn) Returns

    PAYE (Pay As You Earn) is a method of tax deduction from employees' salaries or wages and it applies to all income from any office or employment.

    Here's how to file KRA PAYE returns online:

    1. Log on to https://itax.kra.go.ke/KRA-Portal/ from your browser
    2. Enter your KRA PIN, click Continue. Enter Password and Security Stamp (answer to arithmetic sum) and Click Log In
    3. Under the returns section, click on file returns then select Income Tax followed by the PAYE option.
    4. Click on the returns tab and then the last item ITR for employment income
    5. Fill in the sections marked with a red asterisk (*) on Section A.
    6. Then in section T, only two sections are necessary section 1.1 and 2.5
    7. Move on to Section F and fill out your Total Employment Income.
    8. Click on the section M tab and check that taxable salary, tax payable on taxable salary and tax deducted salary tally the information reflected on your P9 form.
    9. Next in Section Q, fill in the tax paid in advance if applicable. This is the last section requiring information to fill in the return section. Once completed, click submit.
    10. If successful, a tab will appear on your screen with the text, “return slip generated’. You can then click on the download returns slip to get your slip, which you can then send to yourself via email or print.
    The process to file returns on the KRA iTax portal.
    The process to file returns on the KRA iTax portal.

    Coming once a year, most Kenyans usually struggle to login to the KRA iTax portal, with an invalid password error message the most common feature.

    However, worry not as this article not only provides a step by step guide on how to reset your KRA iTax password on the online portal but also how to file your KRA returns online.

    It’s important to remember the email you used when creating your pin, or simply the email registered to your KRA pin portal, as the reset credentials will be sent to that email.

    Procedure for Resetting Your KRA Password

    1. Open your browser and log in to the KRA iTax portal here - itax.kra.go.ke.
    2. Click on the button that reads “Enter PIN/User ID”
    3. Scroll down until you locate the “Forgot Password/Unlock Account” option and click on it.
    4. A new window appears with your pin and security stamp. Answer the simple question provided. If you want different math (captcha), you can refresh by clicking on the two provided arrows.
    5. Click on submit and you will get a confirmation message that your reset credentials have been sent to your email. Click on the back button.
    6. Open your email (you can add another tab) and check for an email from admin.itax2. It will have a message, “Your KRA Web Portal account password has been reset. Your login id and new password are:”
    7. Switch back to iTax portal and enter your pin and the new password which has to be typed as it is. You can also copy the password directly from the email and paste it on the KRA iTax portal.
    8. A new window opens where you enter the old pin. This is the reset password mailed to you. Type it and enter a new password that you will be using.
    9. Type the new password twice. Choose a security question and provide your answer. You will not require it after this.
    10. Accept the terms and policy guidelines and then click submit.
    11. Your iTax portal opens automatically, and in case it takes you to log in window, just log in with the password you have created.
    The process to reset your password on the KRA iTax portal.
    The process to reset your password on the KRA iTax portal.
    File

    What If I Can’t Access My Email?

    There are also instances where you cannot access your email, or you do not know the email that was used. The best solution is to create a new email if you do not have a working one.

    Then go to the nearest tax station or Huduma center. The assisting staff will access your portal and change the existing email to the one you want. Then a reset email will be sent to your working email or the email you will provide.

    What If I Do Not Know My Pin Number?

    If you have forgotten your KRA pin, a similar solution is available.

    You have to go to your nearest tax station or visit any Huduma center and remember to carry your original identification document.

    Using your identification number, the assistant will be able to access your pin. Update the pin on iTax if it is not. If updated and you do not have access to the email used, you should provide one that you can be able to access.

    Option two is to scan a coloured copy of your National ID – both sides and send it via email to KRA's email address callcentre@kra.go.ke with the subject KRA pin. Draft a short message informing them you are requesting for your forgotten pin.

    You can also make use of the KRA social media handles Facebook - Kenya Revenue Authority or Twitter - @KRACare. Share a scanned copy of your ID. Here, you are more likely to get a more timely response than from email.

    It really is that simple. REMEMBER: The deadline for filing tax returns is on the 30th of June every year and failure to do so attracts punitive penalties and interest highlighted below.

    KRA Offences & Penalties

    Offence 1 - Failure to deduct PAYE, account for it or to submit a certificate upon request.

    Penalty Whichever is greater of, 25% of the amount of the tax involved or Ksh10,000.

    Offence 2 - Failure to deduct or remit Withholding Tax.

    Penalty - 10% of the amount of the tax involved, up to a maximum of Ksh1 million.

    Offence 3 - failure to remit Excise Duty or VAT.

    Penalty - whichever is greater of, 5% of the amount of the tax due or Ksh10,000.

    Offence 4 - Failure to pay tax on due date.

    Penalty - 20% of tax involved is charged.

    Offence 5 - Failure to file annual returns by the due date.

    Penalty - Additional tax equal to 5% of the normal tax, or Ksh10,000 in for Non-Individual Taxpayers.

    Need to learn more about the different types of taxes in Kenya? Click Here