What income is to be declared?
All Taxable incomes.
If one does not have income and has a KRA PIN are you required to file a return?
Yes, they are to file NIL returns for the period without income.
Who is required to submit a KRA tax return?
Any individual who has an active PIN as per the requirements of the registered obligations under the PIN.
Why does the commissioner not consider removing the requirement of filling of income tax individual returns by employees who have no other source of income?
The income tax individual return is a requirement under section 52 of the income tax act.
Why does KRA require taxpayers to file income tax individual returns yet the employers had filed the paye retuns?
The employer files PAYE returns to declare taxes deducted from their employees. The employee files The returns to declare their total incomes ie(farming income, business income, employment income, interest, commissions among others)
What is a P9?
A summary of The employment income received in The given year,its issued by The employer to employees
I am unable to edit the details on my ITR return.
Editing of fields for the Income Tax Return, ITR for employment income only has been disabled. If a taxpayer who opts to use this auto populated return notices a discrepancy, they should proceed to file the return using the excel IT1 return.
Under what circumstances would it be mandatory for me to file the excel IT1 return?
If your employer is not remitting PAYE through iTax like the MDAs(Ministry, Departments and Agencies of government) especially those using IFMIS then the PAYE credits will not be posted to your ledger and hence you should file the IT1 returns using the excel form.
If you have a WHT certificate or any other income apart from employment.
I am not able to reprint my income tax withholding certificates.
Retrieve the WHT certificate details from the certificates tab. Reprint WHT certificate- Consult
What should a person living with disability indicate as the Certificate Date when filing the IT1 Return?
The date to indicate is dependent on various scenarios.
If the exemption certificate was renewed before the period you are filing the IT1 return, use the exemption certificate dates as from 01/01/year to 31/12/year.
If the exemption certificate was renewed within the tax period of filing the return the IT1 return can be filed by declaring both the expired one and the renewed exemption certificate.
What happens to Previous Returns filed by person living with disability whereby the return could not accept Two, 2 Exemption Certificates?
Prior cases can now be amended on iTax to ensure that relief amounts are gotten for a full period as per the Income Tax Act.
Can I correct an error once I file a return, amendments?
Yes. You can do this by filing an amended return.
How does one enable MACROS on the Excel Return?
MACROS are inbuilt formulae in Excel that should be enabled once you download the return so that you can be able to fill in the details of the return. Enable MACROS under File - Options- Trust Center- Trust Center Settings- Macro Settings- Check to enable all macros- Check trust access to the VBA project model.
Can I view a copy of the previous returns that I have filed?
Yes. Log on to your account, select returns then consult return. You need to indicate the type of return and the period.
As an individual/organization should I pay VAT and income tax as well?
Income tax is a compulsory tax obligation whereas, for VAT, you pay for it when you are registered with VAT.
What are the benefits of the VAT Special Table?
The VAT special table bears the following benefits for traders:
- Identify erroneously added VAT obligations or VAT obligations that are no longer required.
- Reduces cases of abuse of traders PIN by fraudulent persons
- Assist traders to conduct business with compliant suppliers
What happens when a Taxpayer is on-boarded on the VAT Special Table?
- The taxpayer on-boarded on the VAT Special Table will be restricted from filling VAT returns. Upon attempting to file the return, the system will display the message: “This PIN is currently under review for VAT compliance irregularities. Please contact nearest KRA office.”
Note : Penalties will not be charged for non-filling of VAT returns as a result of on boarding of a taxpayer on the VAT special table.
- Traders cannot claim input tax from taxpayers’ on boarded on the special table. Upon upload of an original or amended VAT return that contains the PIN of a taxpayer who is in the special table, the entry will be rejected by the system and the following message displayed: “This PIN is not liable to input tax deduction”.
The affected taxpayers will be required to contact their Tax Service Office for guidance on removal from the VAT Special Table.
What is the monthly rental income tax?
This is a tax on gross residential rental income between 288,000 (ksh. 24,000 per month) and 15,000,000 per annum and the tax is 10% on gross rent payable monthly on rent received.
If my building has commercial properties on ground floor and residential on 1st-4th floor, which rental income tax should I pay?
You may elect to file and pay tax either in the Monthly regime (if the income is between 288,000 PA or 24,000PM and upto Kshs15,000,000) or the Annual regime if the income is above Kshs15,000,000.
What are the penalties for non-compliance?
Sec 83 of the Tax Procedures Act specifies the penalties for noncompliance on different grounds.