How to File Income Tax Return (KRA) in Kenya: A Comprehensive Guide

Filing income tax returns in Kenya is an essential process that every taxpayer should prioritize. With the KRA iTax platform, the process is straightforward, and assistance from tax agents can make it even easier. By following the steps outlined in this guide, you can fulfill your tax obligations efficiently and avoid unnecessary penalties.

Filing income tax returns with the Kenya Revenue Authority (KRA) is an annual obligation for all taxpayers in Kenya. Unfortunately, a significant number of citizens fail to meet this requirement due to unfamiliarity with the filing process. This guide offers a detailed, step-by-step walkthrough of how to file your KRA returns on the iTax platform, ensuring compliance with tax laws in Kenya.

Step 1: Log in to the KRA iTax Portal

Visit the KRA iTax portal and log in using your KRA PIN and password. Once logged in, you’ll be prompted to solve a simple arithmetic question (e.g., 11 + 6) to verify your login. Ensure you have your login credentials and access to a stable internet connection.

Step 2: Navigate to the Returns Section

On the iTax dashboard, click on the ‘Returns’ menu. Select the type of tax return you wish to file, whether it’s income tax (individual or corporate) or nil returns.

• Income Returns: If you have taxable income, such as from employment or business, select this option.
• Nil Returns: If you have no taxable income for the given financial year, opt for nil returns.

Enter the required details, including your KRA PIN and the tax return period. Double-check the accuracy of the information before proceeding.

Step 3: Fill in the Tax Return Form

For income tax returns, download the relevant Excel form from the KRA website. Fill in the form with accurate details of your income, expenses, and any applicable reliefs. Upload the completed form on the iTax portal by selecting the appropriate file submission option.

Step 4: Submit Your Returns

After ensuring all information is accurate, click on the ‘Submit’ button. The system will process your return and notify you of a successful submission.

Step 5: Download the Return Receipt

Once submitted, download the acknowledgment receipt from the portal. This document serves as proof that you’ve successfully filed your tax returns. Keep it safe for future reference.

Why File Your KRA Tax Returns?

Filing your tax returns is not just a legal requirement under Kenyan tax laws; it also demonstrates your commitment to being a responsible citizen. Non-compliance can result in penalties and fines, which can accumulate over time.

Benefits of Using Tax Agents in Kenya

Tax agents in Kenya play a critical role in simplifying the process of filing tax returns. These professionals:

• Help you understand complex tax obligations.
• Ensure accurate tax computations and timely submission.
• Offer advice on tax-saving strategies and compliance with KRA requirements.

Consequences of Not Filing KRA Returns

Failure to file your KRA tax returns can lead to the following consequences:

• Penalties: KRA imposes penalties for late or non-filing.
• Restricted Access: You may face challenges accessing government services such as clearance certificates.