How to File Taxes in Kenya: A Comprehensive Guide

🔹 Step 1: Register for KRA PIN

Before you can file your taxes, you need a KRA Personal Identification Number (PIN). Here’s how you can get it:

1. Visit the KRA website: Go to https://www.kra.go.ke.

2. Click on e-Citizen: Use the e-Citizen portal (https://www.ecitizen.go.ke) to register for a KRA PIN if you don’t have one.

3. Fill in the necessary details: Provide your personal information such as your ID number, TIN, and contact details.

4. Submit the application: After submitting the application, you will receive your KRA PIN immediately.

🔹 Step 2: Create an iTax Account

1. Visit the iTax Portal: Go to https://itax.kra.go.ke.

2. Register on iTax: After logging in with your KRA PIN, create an account on the iTax portal.

3. Select Taxpayer Type: Indicate whether you are an individual or business, depending on the type of tax you are filing.

🔹 Step 3: Gather Necessary Documents

To file taxes, you will need the following documents:

• Payslips: If you are employed, gather all your payslips for the year.

• Income Statements: If you are self-employed, prepare records of your income.

• Tax Deducted at Source (PAYE): If taxes have been deducted at source, gather the payslip or certificate from your employer.

• Receipts of Expenses: For business owners, keep track of expenses like receipts for purchases, bills, or services that may be deductible.

• Other Income Statements: This includes interest, rental income, and income from investments.

🔹 Step 4: Log Into iTax System

1. Login to your iTax Account: Using your KRA PIN and password, log in to the iTax portal.

2. Click on 'Returns': On the main menu, click on “Returns” to begin the tax filing process.

🔹 Step 5: Complete the Tax Return Form

1. Select the Tax Return Type: Choose the type of return you want to file (e.g., Income Tax, PAYE, VAT).

2. Fill in Income Details: Input all income details (salary, rental income, business income, etc.).

3. Deductions: Enter any deductions like contributions to pension schemes, insurance, or other allowable expenses.

4. Calculate Tax: The system will calculate the amount of tax you owe or any refunds you may be entitled to.

🔹 Step 6: Submit Your Return

1. Verify Your Information: Double-check all the information entered before submitting it.

2. Submit the Return: Once you are sure everything is correct, click on “Submit” to file your tax return.

3. Confirmation: You will receive a confirmation message or notification indicating that your tax return has been successfully submitted.

🔹 Step 7: Pay the Tax (If Applicable)

If you owe taxes, you will need to make the payment. Here's how:

1. Pay via the iTax Portal: After submission, a payment slip will be generated for the amount you owe.

2. Pay via M-PESA: You can pay via M-PESA using the KRA Paybill number (Paybill Number: 820201). Follow the instructions to pay directly from your phone.

3. Pay at a Bank: You can also make payments directly at your bank.

🔹 Step 8: Keep Records

It is essential to keep all your tax-related documents and receipts for at least five years. This includes a copy of your Tax Return and payment receipt.

🔹 Important Dates to Remember

• Filing Deadline for Individuals: The deadline for filing individual tax returns is 30th June each year.

• For Business Owners: The deadline for business taxes can vary, depending on the type of business.

📌 Key Tax Types in Kenya

• Income Tax: For individuals earning a salary or self-employed.

• Pay As You Earn (PAYE): For employers deducting tax at the source.

• Value Added Tax (VAT): For businesses that sell goods or services.

• Corporation Tax: For companies operating in Kenya.

💡 Tips for Easy Tax Filing

1. Use the iTax Help Guides: KRA provides helpful resources on their iTax portal for specific queries.

2. File Early: Don’t wait until the last minute to file your taxes. Early filing helps avoid late penalties.

3. Seek Professional Help: If you're unsure about the filing process or have complex taxes, consider consulting a tax professional or accountant.

📚 Conclusion

Filing taxes may seem daunting, but with the right guidance, it’s a manageable task. Make sure you keep all your documents organized, stay within the deadlines, and don’t hesitate to seek help if needed. Filing your taxes on time helps keep you compliant and avoid any penalties or legal issues.