Filing tax returns with the Kenya Revenue Authority (KRA) can feel daunting, especially for new business owners or individuals. However, with the right approach, you can ensure compliance and avoid penalties. This guide simplifies the process of filing tax returns with KRA’s iTax system.

Step 1: Register for a KRA PIN

If you don’t have a KRA PIN, register on the iTax portal (itax.kra.go.ke). You’ll need your ID, business registration details, and contact information. A PIN is mandatory for all tax-related activities.

Step 2: Gather Required Documents

Before filing, collect:

• Financial records (e.g., income statements, expense receipts).

• Bank statements for business transactions.

• VAT or PAYE records, if applicable.

• Previous tax returns for reference.

Step 3: Log In to iTax

Access the iTax portal and log in using your KRA PIN and password. Reset your password if needed via the “Forgot Password” option.

Step 4: Select the Correct Return Form

Choose the appropriate return type:

• Income Tax Resident Individual: For salaried individuals or sole proprietors.

• Income Tax Company: For registered businesses.

• VAT Return: For VAT-registered businesses. Download the relevant Excel form from iTax, fill it out offline, and upload it.

Step 5: File and Pay

Submit your return by the deadline (e.g., June 30 for individual income tax, 6 months after the accounting period for companies). Pay any taxes owed via M-Pesa, bank transfer, or KRA’s approved channels.

Common Pitfalls

• Missing deadlines, which incur a 5% penalty or KES 10,000 (whichever is higher).

• Incorrect data entry, leading to audits or fines.

• Not keeping records for at least 7 years, as required by KRA.

Filing taxes doesn’t have to be stressful. Our team specializes in KRA compliance and can guide you through the process. Contact us for expert tax support today!