Tax filing can be a daunting task for many employees in Kenya. Whether you are a first-time filer or an experienced taxpayer, understanding the requirements and process can save you from unnecessary penalties and ensure compliance with the Kenya Revenue Authority (KRA). This guide provides a step-by-step breakdown of employee tax filing in Kenya, helping you navigate the system with ease.
Understanding Employee Taxation in Kenya
All employees in Kenya are required to pay (Pay As You Earn (PAYE) tax, which is deducted at source by their employer and remitted to KRA. This system ensures that employees fulfill their tax obligations progressively based on their income levels.
Who Needs to File Taxes?
All individuals earning an income in Kenya, including: Salaried employees, Self-employed individuals Freelancers and consultants, Individuals receiving rental or investment income
Even if your employer deducts PAYE on your behalf, you must still file your annual income tax return via the iTax portal.
Step-by-Step Guide to Filing Your Employee Tax Returns
Step 1: Register on the iTax Portal
Before filing your tax returns, ensure you have a KRA PIN and are registered on the iTax portal (https://itax.kra.go.ke). If you don’t have an account, you can register and obtain your PIN online.
Step 2: Gather the Required Documents
To complete your filing, you will need: P9 Form – Provided by your employer, showing your total earnings, PAYE deductions, and reliefs. Mortgage or Insurance Certificates – If you are eligible for tax reliefs. Other Income Records – If you have additional sources of income.
Step 3: Log in and Access the Tax Return Form
- Visit the iTax portal and log in with your credentials.
- Navigate to Returns → File Return.
3. Select Income Tax – Resident Individual.
Step 4: Fill in the Tax Return Form
- If you are an employee with no additional income, select ‘Yes’ for the employment section.
- Enter your details from the P9 form, including gross pay, PAYE deducted, and reliefs.
- If you have additional income, declare it under the relevant sections.
Step 5: Validate and Submit
After filling in all required details:
- Click Validate to check for errors.
- Submit the return and download the Acknowledgment Receipt.
Common Mistakes to Avoid When Filing Taxes
- Failing to file even when PAYE is deducted.
- Entering incorrect details from the P9 form.
- Forgetting to declare additional income sources.
- Missing out on eligible tax reliefs.
Penalties for Late Filing
Employees who fail to file their returns before the deadline (usually 30th June every year) face a penalty of Ksh 2,000 or 5% of tax due, whichever is higher.
Why Work with a Tax Consultant?
Navigating tax compliance can be overwhelming, but working with a professional tax consultant offers: Expert guidance on deductions and reliefs. Accuracy in tax filing, avoiding errors and penalties. Time-saving solutions for individuals with multiple income sources.
Conclusion
Filing employee tax returns in Kenya doesn’t have to be stressful. By understanding the process and leveraging expert tax services, you can ensure compliance and maximize available tax
reliefs. Don’t wait until the last minute—start preparing today!
Need help with tax filing? Contact Tac Professional Services for seamless and stress-free tax services.
