KRA tax filing has lately evolved into a digital process which makes it much easier and convenient for Kenyans to file their income tax returns. To make things smoother for you, we have prepared this simplified user guide.
As the KRA iTax Kenya Online eServices have been introduced it has allowed most of the Kenyan citizens to get access to the services provided by the government online. This makes it very convenient for Kenyans to file taxes at the comfort of their own home. It was mandatory for all the citizens to report VAT and their payments to be made on 20th of each and every month. Everyone has been shifting to the new iTax system by slowly discarding the old ITMS/Taxpayer software.
What is iTax Kenya?
It is a system which is developed by the KRA in order to change and replace the current prevailing KRA Online services.
KRA web Portal login – iTax KRA Login
To log in to the iTax server, just go to the official KRA website Kenya
Step By Step Guide on how to file KRA iTax Returns forms online
- First, visit the official online portal.
- Right on the login page for the KRA iTax portal enter the KRA Pin number along with the password, you will be prompted with a security question, make sure to answer it properly.
- Click on the ‘e-Returns’ at the navigation tab, after that click on the option ‘file Returns’.
- Now, it is time for you to select the type of returns. Before you click ‘next’, make sure you have selected the Tax application that is applicable to you.
- The next page will be a walkthrough for the filling process. Click on the provided links to download the form of the Tax Returns in either ODS or Excel.
- Now, make sure you are filling up all the necessary fields in the tax-returns form that you have downloaded. Save the document file in your laptop or computer.
- It will be necessary for you to enable the macros option so that you will be able to Validate along with getting your file zipped.
- The registration is almost complete, return on to the page and then select the time period you are filling for. Next, it is time to upload the zip file out of the form of the iTax Returns. Make sure you agree to all the terms and conditions mentioned. When you are done select ‘Submit’.
- You will be prompted if you would like to finish up with uploading the file, click on the ‘ok’ button.
Guidelines to file the NIL PAYE/VAT returns using the official KRA web portal
- Visit the official KRA site
- Enter the User ID/PIN (KRA PIN), click on the Continue option. Now you have to type in your password. In order to access the iTax profile, you must answer the security question.
- Next file a KRA iTax Nil Return. For this, you have to click on the Returns menu, just select the File Nil Return, click the menu named ‘Returns’. Finally, select the File Nil Return option.
- Select the Value Added Tax – VAT or Income Tax PAYE, under the Tax Obligation pane.
- Click Submit after you have entered the return period information.
- An e-return Acknowledgement receipt will be produced. Download the e-Return Acknowledge slip for the records.
Downloadable KRA iTax forms
- Application Form for Amnesty for Citizens in Diaspora
- T.CC 1 – Tax Compliance Certificate application form Kenya
- I.T.1 – Non-Resident Individual Returns
- I.T.1 – Individual Income Tax Returns
- I.T.2P – Partnership Returns
- I.T.2C – December Cases Returns
- User Guide on how to file returns on iTax
- List of PAYE Forms Used by Employers
iTax Kenya – Actual workings
iTax has been made so that tax payers can easily update their tax details, file the tax returns details by using Open Office or Microsoft Excel, register all the tax payments and then make some inquiries related to the status along with the real-time watch towards their account or ledger.
iTax Kenya – About the iPage KRA
It is actually the profile page in iTax that allows an update of the registration details for the taxpayers. The iPage functionality basically depends on the internet server that you are connected to.
ITax Kenya – Details for KRA i tax registration.
Updating the iPage
WHO – All taxpayers such as companies, individuals, NGOs, parastatals and such need to update their details on the website.
WHY – iTax allows a capture of the necessary added registration data and information which has not been captured previously. The required information in iTax has an inclusion of everyone belonging to your country, cell phone contact, employer, tax agent, unique email address and such.
WHEN – The update for the iPage is required to be done at the very first login to the iTax server.
WHERE – Go to the official KRA website and login. At the site, you will get to see the iTax portal banner. You have to click on it. Remember that when you will click on the link in order to access the portal. When you log in to the server for the very first time, the very first requirement will update the iPage.
HOW – You are needed to fill in all the necessary fields which are highly mandatory, most importantly under the basic information tab and then finally submit the data for updating the information of the taxpayers with the KRA.
PIN not recognized during iPage update
This is a common problem that happens to the new PINs which have not been yet migrated into iTax. It is mandatory for the taxpayer to send the PIN to KRA in order to migrate through email at [email protected] and [email protected] or you can even call the following numbers 0202391099, 0202390919, 0771628105. You can also visit your nearest office of the KRA.
The necessity of KRA VAT certificate along with a PIN certificate-
The PIN certificate alone is very much sufficient. The taxpayer needs to add VAT obligation on the PIN in case if they want to start their dealings in some VAT businesses.
- iPage update database error / Error in date of birth or certificate of incorporation / Income tax date coming before business commencement date
In this case, the taxpayer needs to send his PIN for the correction of data to the KRA through email at [email protected] and [email protected] or you can call 0202391099, 0202390919 and 0771628105. You can also visit your closest KRA office.
- Error ref. no. 139
You do not have to worry about this issue. This basically happens due to poor connectivity of the internet connection.
KRA Tax Returns – Kenya Revenue Authority iTax KRA Online Tax Returns
Filing all returns on iTax
All you need to do is login into the system first, after you are done with this go to the returns tab, now you need to select ‘file return’ and then just download it. Remember that it is very much necessary for you to fill the offline return actually before you generate a zip file which you will be uploading.
Treatment of credits from a previous VAT return
At the Tax Due worksheet right on the VAT return, it will be possible for you to put the figure from the credit of the previous months.
Unavailability of PINs for your suppliers
It is to be noted that an invoice which does not have a valid PIN will not be considered as an appropriate tax invoice, thus it will not be allowed for a tax deduction.
Treatment of Credit notes in iTax
iTax has rightfully provided for the addition of credit notes right in the return itself. You are required to input a negative figure while filling up the returns. Also, quote the invoice that is related to the credit note.
Error correction after return filing
Surely you can. Filing an amended return will do just fine for this.
MACROS are required to be enabled once the return is downloaded, in Excel they are inbuilt. The download is, however, necessary because it will allow you to fill in the ‘returns’ details. MACROS can be enabled at the readme section of the return, it will give you a detailed iTax Kenya guide which will depend on the Excel version that you will be using.
Large data input solution
There is a possibility for you to do the returns in MS Excel and then easily import the required information directly to the return. It will be necessary for you to save this information in the CSV (Comma delimited). If you require further information just contact the intermediary agents certified under the KRA, or email at [email protected] and [email protected] or you can call 0202391099, 0202390919 and 0771628105. You can also visit your closest KRA office.
PIN available but not traded
For this, you will be required to go for a NIL return filing. Just go to your iTax profile, then go to ‘returns’ and then just select the ‘nil return’ tab and now submit.
File returns for the previous months/year
This is the case of first time filing and all you need to do for this is call the KRA for changing the rollout date. If you have filled on iTax your very first return but have failed in subsequent returns filing, which is for a period of one to three months. Before you file the current month’s data, you will be required to file the missing returns on iTax.
File returns for previous months/year (Upload issue)-
During the process of first time filing, you will be required to call the KRA in order to alter the rollout date. However, you will need to file all the missing returns in the iTax before filing the current one in case you have failed in filing the subsequent returns when you had filled the first return.
Filing VAT/PAYE return on iTax
In your iTax account just go and update the tax obligation in order to enable you to file it.
Viewing a copy of the previous returns
Just log in to your iTax account, now select the ‘returns’ tab and then all you have to do is consult return. You are required to select the return type along with the time period.
Invalid PIN error
Visit the nearest office of the KRA for further assistance. You can also call 0202391099, 0771628105 and 0202390919.
KRA Portal iTax – Making Payment in iTax Kenya
Payment before return filing
Surely you can. Filing returns and payment of taxes are now delinked. In case there is a return for which there is no matching payment, it will directly impose a penalty along with interests.
A payment registration number (PRN) will be generated by the taxpayer on their iTax profile. Next, the printed PRN will be taken together to the bank along with the payment mode (Cheque, RTGS or even cash)
Payment Registration Number (PRN) for iTax Kenya registration
PRN or a Payment Registration Number replaces the age-old manual tax payment stationeries as the VAT3 along with P11. PRN is generally barcoded and is electronically generated with a very unique serial number for all the transactions. It is necessary that the PRN should be quoted when payments are being made to allow an update for the taxpayer ledger account. If not properly utilized, the PRN will expire in a period of 7 days.
Generating a PRN
Open the taxpayer’s profile and go to the Payments section, after which you are supposed to register the payment. Select the tax head first and then just fill in the electronic form. Fill up all the fields, most importantly the ones which are marked with red stars because they are mandatory fields. Now submit the form and your PRN will be generated.
Paying taxes through the local bank
As long as there is an agreement intact between the KRA and your bank, you definitely can. At the current scenario, the KRA has signed agreements with a total of 27 banks. However, there is still an inclusion of other banks and there is an expectation that each and every bank will be included in the agreement once iTax is successfully rolled out.
Payments not visible on the iTax ledger
The main reason for this situation is outside payment surpassing the iTax platform. Basically, it happens if the PRN was not generated or not quoted when the payment was executed. The payment documents to the KRA must be provided to the taxpayer for back-office reconciliation.
Making payments for WHT in iTax
You are required to click on the ‘Payment Registration’, after this step on the tax head select ‘income tax head’, now select WHT. Now you are required to generate a slip of payment by successfully adding the taxpayers notifying the withheld payment information.
Making payments for Agency revenue in iTax
In order to do this, you need to click on the ‘payment registration’ tab, after which you will need to go to the text head. Now you are supposed to select the ‘agency revenue’ and effectively generate a slip for the payment made by you by successfully selecting the agency revenue that is required to be paid, which is accountable to stamp duty, land rates, KEBS and sugar development levy.
Agency revenue payments not visible on user ledger
The ledgers are usually maintained by the main Principal bodies and not the KRA. Such bodies include Ministry of Lands, Kenya Sugar board, KEBS and such.
iTax Kenya – Obligation
Tax obligation in Kenya-
It is the responsibility of tax on a taxpayer.
Two icons after registration (change the KRA password and log out)
Within 24 hours of registering, your profile will be filled with icons. In any case, if you want to make an immediate transaction, you can visit the nearest KRA office or send the PIN to KRA via email [email protected] or [email protected] Alternatively, you can call 020 2390919 and 0771628105 and 020 2391099.
The system prompt for tax obligations
It mostly happens in case of individual registration. You can visit the nearest KRA office or send the PIN to KRA via email [email protected] or [email protected] Alternatively, you can call 020 2390919 and 0771628105 and 020 2391099 and make a request for obligation.
KRA iTax Tax Compliance Certificate Kenya
Application of iTax Tax compliance Certificate online
You can apply for KRA Compliance Certificate using your iTax profile. A KRA officer will receive the application and it will be electronically processed. If successfully done, you will receive an email with the TCC attached. Those unsuccessful will be notified.
iTax KRA Pin Registration
Changing the e-mail address
You can initiate a change of email id. Under the registration option on your profile, you will find the option to change your PIN details. When you initiate the process, a task will be made which will then require approval by a KRA officer.
Possibilities for KRA password reset
Go to iTax login page > forgotten password. Remember the security question you set when you registered for the first time? You will need to answer that when asked. Once all the information has been submitted without fail, you will be sent new KRA web portal login details via email.
KRA PIN password change (security answer wrong)
You will need to send the Pin to KRA to reset password and security question. Mail the PIN to [email protected] and [email protected] Or you may call 0202390919 and 0202391099 and 0771628105. Alternatively, you can visit your nearest KRA store.
KRA PIN checker lock issue
Passwords that get blocked are automatically reset within 24 hours. In case your password issue has come up during the KRA PIN update you should mail the issue immediately. A taxpayer can also send the PIN to KRA in order to be reset via email [email protected] or [email protected] It can also be done by calling 0202390919, 0202391099 and 0771628105. If you have a KRA office nearby, you can visit there to get it done.
Advantages of KRA iTax Returns system
Here are some of the advantages of using iTax:
- You will have access to the taxpayer ledger and also access by employees on their PAYE deductions.
- Upon filing of tax returns and making the payment, there will be a real-time update of the ledger.
- You can access iTax comfortably from your home or office.
- To make payment of taxes more convenient, more Banks are being recruited.
- The domestic tax returns are built on excel format keeping it simple.
- Efficient management of time. Lesser queues at the banking hall. The processing and application of tax-related services such as Tax Compliance Certificates, Amendments, and Refunds etc. is smooth.
- Upon completion of transactions, you will be informed through SMS notifications and email.
- Certificates such as a PIN, Exemption Certificates and Withholding Tax Certificates etc. are generated electronically.
- It also reduces the taxpayer’s inconvenience when KRA officers request for records.
KRA iTax login Portal Systems Minimum Requirement
Recommended browsers supporting iTax
iTax works efficiently with Mozilla Firefox.
iTax KRA Portal – Tax Refunds in iTax Kenya
iTax returns portal and upgraded Microsoft Office-
Taxpayers might have a difficult time working with the newly released versions of MS Office. However, MS Office 2007 and 2010 will work well with iTax generated returns.
Applying for refunds in iTax
There have been no instructions regarding this matter yet, so the usual way will be used to process refunds.
iTax Portal Kenya – Other General Questions
Know your PIN and station with ID inclusion
You can dial 572 from your phone and follow the steps to have your queries answered. You will be charged a relatively small fee of Kshs 5.
KRA offers training on iTax
Free training is provided every Thursday on the 5th floor of Times Tower. You can visit your nearest KRA office where you can also find the iTax Kenya guide or visit the KRA website where you will find step by step instructions regarding navigation through the iTax system. RA plans to coordinate with appointed, trained and licensed Intermediary Agents and they will assist taxpayers with the Registration and filing tax returns. Tax Agents registered with the KRA (LSK/ICPAK members included) will be authorized to make transactions on iTax, on behalf of taxpayers using their own KRA log in credentials.
Information security on iTax
iTax has advanced security features integrated into it:
- When updating the registration details, the person paying tax needs to provide their email address which is unique for every registered PIN. Security measures required during password creation has been made stronger and every taxpayer has the freedom to decide their password strength. Additionally, there will be a security question which will be used to verify the rightful user when a new password is issued.
- A security stamp is provided when logged in. This prevents malicious phishing websites and programs from hacking into a taxpayer’s KRA iTax portal account.
- An initiative taken by the Government is going on under the National Public Key Infrastructure (PKI) Project which involves the KRA. This feature enables the taxpayer to make secure transactions on iTax and uses a digital signature to verify the user’s identity.
iTax issues support
You can use the email [email protected] and [email protected] for any queries. You may also call 0202390919, 0202391099, and 0771628105. Visit your nearest KRA office if you want to have your queries answered in person.
iTax Kenya urgency
Remember when every individual was asked to pay their income tax returns to the taxman? We had to set out the income we received the year before, as well as the taxes we paid on the present income in the discharge of our duty as citizens. That time is back with us.
The calendar from 1st January to 31st December is an individual’s tax year. Every individual is at liberty to earn any possible amount as their income, from several lawful sources throughout the year.
A bit of that income will be treated with as taxation. The advance income tax collection gives necessary liquidity to the Exchequer in a mission to finance budget of the government.
Before 30th April of the subsequent year or at the end of the present year, an individual glances at the income made in one year and the amount of taxes being paid. With that, one can approach the taxman for a refund. The income tax return can be made by 30th June.
Many find this process formidable for they think that the tax return being digitalized has made the already complicated process even worse.
On the other hand, people familiar with tech appreciates the digital system of tax payment.
Taxpayers earning from only employment do not need to worry as the iTax platform has made it easy for them to know how to file returns since their taxes are paid through the PAYE system managed by their employers.
For people who are self-employed, entrepreneurs, businessmen, freelancers, or the people earning rental income who have not been declared through the monthly residential rental income taxation regime, the method needs more input.
An individual needs to reveal both earned income and the cost incurred to earn that income. This calculation is escorted by the tax rules on what costs do not qualify and what is eligible for deduction.
Those people who are housed by the turnover tax regime are saved from this swamp. Mainly traders and vendors who are earning less than Sh5 million but more than Sh500,000 in revenue in the year will act in accordance with the turnover tax of 3% of their gross receipts.
The words that reverberate are that, in June, people will need to comply with the yearly responsibility of filing their income tax return.
Despairing people make a last-minute run towards criminal methods by going to cyber cafes in order to beat the iTax KRA returns deadline of tax filing.
Many taxpayers who are skeptic about how to file tax returns Kenya sometimes make the mistake of rushing so that they can make their income tax returns on time. In the haste of knowing how to pay advance tax online Kenya, they end up filing incorrect tax returns. They need to understand that making accurate returns is more important than meeting the deadline.
As a result, the iTax eloquently communicates to them of the ever-growing tax demand by sending shocking defaulter notices.
You might wonder what you are supposed to do. Simply begin early without waiting to file your tax return at the eleventh hour. This will help you deal with any kind of problems or hurdles that may come up and you might as well be able to save some money.
iTax Kenya: Late KRA fines for Kenya tax returns
While saying that the State is now going to fine taxpayers Sh20,000 up from Sh1,000; the taxman raised the late-filing fine by 20 times.
The KRA said that they are cooperating with membership based professional organizations and employers so that they can facilitate employees in filing the returns before the deadline.
Although the KRA did not implement the kra penalties earlier, those were enacted under the Tax Procedures Act no.29 of 2015.
Wanja Wang’ondu, the acting assistant manager of KRA in the Nairobi region said that they are reminding all the Kenyans that every individual should file Income Tax returns on or before 30th June 2017. They are filing the Income Tax returns before the kra deadline commencement, failing which will result in a penalty of Sh20,000 or 5% of the tax due. People who failed to file the tax returns for 2015 by 30th June 2016 has to pay a sum of Sh1,000 as kra penalty for not filing returns. Individuals who want a KRA tax compliance certificate will not be issued one until they have paid the penalty for kra tax returns 2016. If you have more queries regarding how to pay kra penalties kindly call their helpline services or mail at [email protected]
iTax is a web-enabled tax collection system which has simplified tax processes by saving the time taken to file tax returns. It will also help increase revenue collection.
The system updates the employer and employees’ register in real-time post-filing, and sends notifications regarding the success or failure of returns being filed.
According to the taxman, the iTax platform had processed transactions worth Sh280 billion between 1st January and 8th June the previous year.
iTax Kenya news updates
KRA prefers online tax returns over manual
Manual filing of tax returns has been scrapped by The Kenya Revenue Authority (KRA). This move is meant to give a significant boost to collections made through the more convenient electronic iTax platform. It is a part of all the strategies upon which KRA is relying in order to improve its tax collection. The iTax KRA online portal makes way for the efficient electronic filing of KRA advance tax payment online as per one’s own comfort; whether you are at your office or home. In this way, one can avoid the lengthy paperwork.
Commissioner for Domestic Tax, Alice Owuor, in a notice, said that KRA wishes to inform all the individual taxpayers (employees included) and also the companies that manual income tax returns will not be accepted at any KRA office. This has also greatly helped in finding out as to how to file nil income tax return online for individual.
The taxman has established support networks across several Huduma Centres around the country to support networks for the iTax system called iTax support centre. This will also lure in more taxpayers, while reducing any latest missed collection target streak.
KRA has a target of raising the count of active taxpayers in Kenya, to 4 million by 2017-18 against the present estimated number of 1.6 million. It seems like they are pressing to improve collections subsequent to a series of missed targets.
In a strategic planning for 2015/16-2017/18, the taxman set enhancement of revenue as a goal saying that it will influence technology as iTax to facilitate tax-payer base expansion and amplify tax dispute resolution as well as refine the detection capacity to improve collection.
Treasury’s latest data shows that the KRA is probably going to miss a full year collection targets. It is after they released Sh687 billion with only 4 months before the current budget window ends.
Collections during the 8 months till February cost the taxman a deficit of Sh527.88 billion whereas the target was Sh1.21 billion for that year till June. This made the taxman miss its half-year tax collection targets by a large sum of Sh47.6 billion. The Treasury delayed application of the Excise Duty Act 2015.