KRA iTax Portal for Income Tax Returns

The KRA iTax Portal is the system that has been developed to replace the current KRA Online system. Whereas, it is a web-enabled and secure application system. In particular, that provides a fully-integrated and automated solution for administration of domestic taxes.

Additionally, the KRA iTax Portal Enables Taxpayer internet based solutions. Such as; PIN registration, income tax returns filing and payment registration. Allowing for tax payments and status inquiries with real-time monitoring of accounts. Below are some of its major advantages. Including,

  1. Simplification of tax processes and making it easy for Taxpayers to comply
  2. Shortens time taken to extract data & information on revenue
  3. Reduces time taken by Taxpayers when dealing with Kenya Revenue Authority
  4. Re-engineers business processes for effectiveness & efficiency
  5. Enhances the ability/accuracy of KRA/Taxpayers to account for taxes

Here is the full iTax Presentation Module.

The KRA iTax Portal Service Update

All taxpayers (individuals, companies, parastatals, NGOs, etc) should update their information using the iPage. When logging for the first time, the initial requirement will be updating iPage. Equally important, the KRA iTax Service Portal provides for the capture of additional registration data not previously captured. The information required in iTax includes among others;

  • your county,
  • employer,
  • cell phone contact,
  • unique email address,
  • tax agent, etc.

For your information, go to https://itax.kra.go.ke or; visit the KRA website www.kra.go.ke. Thereafter, click on Online services and select PIN Registration to access the iTax portal.

About the KRA iTax Portal Service Solutions

Notably, the Kenya Revenue Authority (KRA) is responsible for all the operations that govern the paying and collection of taxes in the country. Not to mention, it is good that the government gets the right type of people to work in the organization. And so as to get better ways of improving the tax system in the country.

To enumerate, Kenya Revenue Authority (KRA), is an agency of the government of Kenya that is responsible for the following. Including,

  • the assessment,
  • collection
  • and accounting for all revenues that are due to government, in accordance with the laws of Kenya.

The headquarters of the agency is located in Times Tower, on Haile Selassie Avenue, in the central business district of Nairobi, the capital and largest city of Kenya.

KRA iTax Portal Organizational Structure

  1. Customs & Border Control Department (C&BC)
  2. Domestic Taxes Department (DTD)
  3. Intelligence & Strategic Operations Department (I&SO)
  4. Investigations & Enforcement Department (I&E)
  5. Strategy, Innovation & Risk Management Department (SIRM)
  6. Corporate Support Services Department (CSS)
  7. Legal Services & Board Coordination Department (LS&BC)

In addition to the seven major departments, the Authority has the following four other departments. Especially to harmonize operations and efficiency. Such as;

  1. Transformation and Leadership Office
  2. Kenya School of Revenue Administration
  3. Internal Audit Department
  4. Marketing & Communication Department.

To increase tax compliance percentages and encourage more people to file their taxes, the Kenya Revenue Authority has an elaborate online portal. In general, that allows citizens to log in and either;

  • file tax returns,
  • check their penalties
  • or apply for a certificate of tax compliance.

Furthermore, this is in line with the Kenyan government’s efforts to automate service delivery through the e-Citizen initiative and avoid long, inconvenient physical queues.

KRA iTax Portal & e-Citizen
  • Save
As can be seen, e-Citizen is a portal for you to access information and services provided by the Kenyan Government.

Acquiring New PIN through KRA iTax Portal

Be that as it may, to register for a KRA PIN, the system through KRA iTax Portal will ask you to provide your Alien ID card. For instance, this is how you register for your KRA PIN.

  1. Visit itax.kra.go.ke
  2. Select “New PIN Registration”
  3. Select “Non-Individual” and “Online Form” as your mode of registration.
  4. Fill in your basic information.
  5. Select suitable tax obligation by checking the relevant boxes.
  6. Enter details of company directors or partners.
  7. Fill in agent details if you have one.
  8. Enter the result of the arithmetic sum provided and submit.
With this in mind, please visit the iTax Portal to Get Started!

Income Tax Remittance on KRA iTax Portal

In the first place, Income Tax is a direct tax that is imposed on income derived from Business, Employment, Rent, Dividends, Interests, Pensions among others. Not forgetting, methods of collecting Income Tax include:

  1. Pay As You Earn (PAYE)
  2. Withholding Tax
  3. Installment Tax
  4. Advance Tax
  5. Presumptive Tax

Individual Income Tax

Secondly, Individual Income Tax is charged for each year of income on all the income of a person. Whether resident or non-resident, which accrued in or was derived from Kenya.

Individual Tax Bands and Rates

Annual Monthly Rates
On the first Shs. 147,580 Shs. 12,298 10%
On the next Shs. 139,043 Shs. 11,587 15%
On the next Shs. 139,043 Shs. 11,587 20%
On the next Shs. 139,043 Shs. 11,587 25%
On all Income Over Shs.564, 709 Shs. 47,059 30%

Taxation for Non- Resident?s Employment Income

Important to realize, any amount paid to Non-Resident individuals in respect of any employment with or services rendered to an employer who is resident in Kenya or to a permanent establishment in Kenya is subject to income tax charged at the prevailing individual income tax rates. Non-Residents are however not entitled to any personal relief.

How do I file for Individual Income Tax Returns?

As a matter of fact, an individual income tax return is a declaration of income earned by an individual within a particular year. And every individual with a KRA PIN is required to file this return.

Therefore, you can file your Individual Income Tax Returns for a particular year of income, anytime between 1st January to 30th June of the following year. After all, submission of income tax returns is an online process done via iTax. Another important key is that;  NIL Return is made on returns, not applicable.

How do I pay Individual Income Tax?

After filing the return online via iTax, generate a payment slip and present it at any of the appointed KRA banks to pay the tax due. In addition, you can also pay via Mpesa. Equally, you can use the KRA Pay bill number 572572.

What is the penalty for late filing and paying?

Date: Individual Income Tax Returns should be filed on or before 30th June of the following year.

Penalty on late filing: Whichever is higher between, 5% of the tax due or Kshs. 20,000.

Penalty on late payment: 5% of the tax due and a late payment interest of 1% per month on the unpaid tax until the tax is paid in full.

What is Tax Relief?

As an example, a Tax Relief is an incentive that reduces the amount of tax that a person has to pay.

  • Personal relief:

By the same fashion, every resident individual is entitled to a personal relief of Ksh. 16,896 per annum (Kshs.1,408 per month)

  • Insurance relief:

Finally, every resident individual is entitled to an insurance relief of 15% of the number of premiums paid for self, spouse or child. However, it shall not exceed Kshs. 60,000 per annum. For one thing, Insurance relief applies to the following policies;

  • Life Insurance
  • Education Policy with a maturity period of at least ten years
  • Health Insurance

Summing Up,

In summary for many years, tax returns filing was never a walk in the park. Back in the day, the exercise was manual and taxpayers would submit hard copy documents of their tax returns to Kenya Revenue Authority (KRA) offices in person. This would definitely take quite some time, especially those who rush on the eleventh hour to beat the deadline.

In 2014, KRA, through the introduction of the iTax platform, made substantial efforts to automate the exercise as well as other facets of tax administration with a view to enhancing efficiency.

Periodic enhancements on the system have made the exercise, whose mere thought of its complicated demands would have evoked a severe headache back then. In that case, to be a walk in the park.

Having said that, thanks to these enhancements, for example, taxpayers with employment as the only source of income can now file their tax returns without having to download an excel sheet in a more simplified process. Here are more Frequently answered questions while filing KRA returns.

Resourceful References;

  1. The jmexclusives Consultants: Referral Brands & Affiliate Products Online
  2. Kenya Revenue Authority Guides: About Kenya Revenue Authority
  3. KRA iTax Portal: Frequently Asked Questions & Answers
  4. See Also: KRA extends working hours to help you file your returns

 

Leave a Comment

Scroll to Top
Copy link
Powered by Social Snap