Kenyans who will file their tax returns past the 30th June deadline risk being fined sh20,000 or more depending on the tax bracket, the Kenya Revenue Authority (KRA) has warned
Penalty for late filling of tax returns on employment is 5 per cent or Sh 10,000 whichever is higher. On turnover tax, penalty is Sh 5,000; any other case is five per cent of tax due or Sh 20,000.
For failure to submit a tax document as required, one will be charged Sh1, 000 per day, maximum Sh 50,000
Other unspecified tax return related offenses will attract fine not exceeding Sh 500, 000 or imprisonment for a term not exceeding three years, or both.
Speaking during a KRA iTax forum, Ms Wang’ondu, KRA acting assistant Manager, Domestic Taxes, Nairobi region urged Kenyans to use the window period to avoid hefty penalties.
The penalties were enacted under the Tax Procedures Act number 29 of 2015 but KRA has previously not implemented them.
It is on this basis that Dhahabu Kenya has prepared you a step by step procedure on how to file returns online.
Who is eligible to file tax returns?
Every registered tax payer with a Personal Identification Number (PIN) from the Kenya Revenue Authority must file tax returns every financial year.
This applies whether you are in gainful employment or operating an income generating activity.
Those who have no business or not in gainful employment must also file nil tax returns.
Documents you need to file tax returns
For every online tax returns, one need to register on KRA’s tax portal iTax using his/her PIN details.
Those in gainful employment however need the following documents:-
- Employer information for the employed individuals
- Employer’s PIN if you’re employed. Request your employer to give you the P9 Form. It contains all the information you’ll need to file the returns
Those who have businesses must have the following details:-
- Financial Statements
- Insurance Premium Certificate/ PIN of Underwriter/Mortgage interest certificate
- Withholding tax certificates where applicable
- Any other documents relating to income you received or deductions you need to claim
- With the above details, you can now visit the KRA portal kra.go.ke to register on iTax using your PIN details. For those already registered on iTax can visit itax.kra.go.ke and insert their passwords
- Click on ‘e-Returns’ or hover on ‘Returns’ on the navigation bar and click on ‘File Returns’
- Select the type, Enter your taxpayer’s PIN and selects the Tax obligation applicable to you before clicking on ‘Next’
- The next page will walk you through the filling process. Basically, you just need to click on the links provided to either download the Tax Returs form in Excel or ODS
- Fill out all the applicable areas in the downloaded tax returns form and save your document in your computer.
- You need to enable macros to be able to ‘Validate’ and Zip your File.
- Return to the page and select the period for which you are filling the returns, upload the zipped filled out Returns form, agree to the terms and select ‘Submit’.
- When asked whether you would like to upload the file, click on ‘OK’
A message indicating successful application will appear. You will also be notified if you have filled less or excess returns.