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Filing your KRA (Kenya Revenue Authority) tax returns for employment income is a must  for all registered taxpayers in Kenya with a Personal Identification Number (PIN). The process is done online through the iTax platform and requires a few key documents.

Here’s a guide to filing your KRA returns for employment income:

Documents you need for filing tax returns
  1. KRA PIN: Your Personal Identification Number.
  2. iTax Login Credentials: Your iTax password and security stamp (the answer to the arithmetic sum that appears on the screen). If you’ve forgotten your password, you can reset it on the iTax portal.
  3. P9 Form: This is the most crucial document. Your employer is legally required to provide you with a P9 form by the end of March each year. It summarizes your gross income, allowable deductions (like NSSF, NHIF), personal relief, and PAYE (Pay As You Earn) tax deducted by your employer during the tax period (January 1st to December 31st of the previous year).
Other Supporting Documents (if applicable for claiming reliefs)
  1. Mortgage Certificate: If you have a mortgage and wish to claim mortgage interest relief.
  2.  Insurance Policy Certificates: For life, health, or education insurance policies (specifically those 10 years and above) if are claiming insurance relief.
  3.  NHIF membership number and total annual premium paid.
  4. Tax Exemption Certificate: If you are a person with disability (PWD) and have an exemption certificate.
  5. Post-Retirement Medical Fund (PRMF) contributions certificate.
  6. Affordable Housing Levy (AHL) contributions details.
Guide to filing your tax returns on iTax
  1. Access the iTax Portal: Go to the official KRA iTax portal: itax.kra.go.ke/KRA-Portal
  2.  Log In: Enter your KRA PIN and password. Solve the simple arithmetic security stamp and click Login.
  3. Navigate to Returns: Once logged in, click on the Returns menu item.
  4.  Select ‘File Return’: From the dropdown menu, choose File Return.
  5.  Select Tax Obligation:
  6.  Enter your KRA PIN (it might auto-populate).
  7.  Under ‘Tax Obligation,’ select ‘Income Tax – Resident Individual’.
  8.  Click ‘Next’.
  9.  Choose Return Type: The system may offer a pre-populated option for “ITR for Employment Income only” or require you to download an Excel/ODS template.
  10.  For “ITR for Employment Income only” (Web-based, often pre-populated): This is the easiest method if you only have employment income and your employer has filed your PAYE returns correctly through iTax. The system will pre-populate most of the details from your P9. You’ll simply need to verify the information and input any additional reliefs (like mortgage, insurance, AHL, PRMF) if applicable.
  11.  For Excel/ODS Template (Offline Filing): If the pre-populated option isn’t available or if you have other sources of income (like business, rental, farming), you’ll need to download the appropriate Excel or ODS template. Save it to your computer.
  12.  Fill in the Details (if using Excel/ODS Template):
  13.  Enable Macros: When you open the downloaded Excel/ODS file, ensure you enable macros. This is crucial for the form’s functionality (validation and zipping).
  14.  Basic Info (Sheet A): Fill in your basic details. This is where you declare if you have a mortgage or insurance policy by selecting “Yes,” which will open additional sheets for those details.
  15.  Employment Income (Sheet F): Enter your employer’s PIN, name, gross pay, allowances, and benefits as per your P9 form. If you had multiple employers, you would add rows for each.
  16.  PAYE Deducted (Sheet M): This section often auto-populates. Verify that the PAYE tax deducted at source matches your P9 form.
  17.  Mortgage/Insurance/Other Reliefs (Relevant Sheets): If you indicated “Yes” in the Basic Info, fill in the details from your mortgage or insurance certificates.
  18.  Tax Computation (Sheet T): This is the final sheet that automatically calculates your tax due or refund based on the information entered. Confirm that the figures align with your P9. This is also where you’ll capture allowable deductions like pension contributions (up to prescribed limits), PRMF, AHL, and SHIF (for December).
  19.  Validate and Generate Zipped File (if using Excel/ODS Template): Once you’ve filled in all applicable sections and confirmed the computation, click the ‘Validate’ button within the Excel sheet. This will generate a zipped file (usually saved in your ‘Documents’ folder or a specific iTax folder). Do not save the Excel file as a regular document; always use the ‘Validate’ button.
  20.  Upload the Form: Go back to the iTax portal’s “File Return” page. Select the tax period, browse to locate the zipped file you generated, and upload it.
  21.  Agree to Terms and Conditions: Tick the checkbox to agree to the terms and conditions.
  22.  Submit the Return: Click the Submit button and confirm the submission when prompted.
  23.  Receive Acknowledgment: Upon successful submission, an e-return receipt with a confirmation message and acknowledgment number will be generated.13 Download and save this receipt for your records.

Important information for filing tax returns

  • Deadline: The deadline for filing individual income tax returns for the previous year (January 1st to December 31st) is June 30th of the current year.
  • Nil Returns: Even if you had no employment income for the year but possess a KRA PIN, you are still required to file a NIL return to remain compliant and avoid penalties.
  • Multiple Employers: If you worked for more than one employer in a tax year, you must declare income from all employers in a single return. Your P9 forms from all employers will be essential.
  •  Errors: If you make a mistake, you can file an amended return through the iTax portal.
  • Penalties: Late filing attracts a penalty of Ksh. 2,000 or 25% of the tax due (whichever is higher).