Kra Taxation

ISO 9001:2000 CERTIFIED

USER GUIDE FOR FILING

INDIVIDUAL INCOME TAX

RETURN ON-LINE

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TABLE OF CONTENTS

Item Description Page 1. ABBREVIATIONS IN THE DOCUMENT ................................................................. 2 2. INTRODUCTION ......................................................................................................... 2

3. STEP-BY-STEP GUIDE FOR FILING IT1 RETURN ONLINE ................................ 3 4. GETTING STARTED ................................................................................................... 3

5. HOW DO I LOGIN TO ITMS TO FILL MY RETURN? ............................................ 4 6. HOW DO I FILL IN MY RETURN ONLINE? ............................................................ 5 7. HOW DO I FILL IN MY INCOME DETAILS FROM SPECIFIED SOURCES? ...... 7 8. FILLING THE DRP IN PART A-F .............................................................................. 8

9. HOW DO I FILL MY EMPLOYMENT INCOME DETAILS? ................................... 10 10. HOW DO I FILL IN MY PENSION CONTRIBUTION, MORTGAGE INTEREST OR

HOSP CONTRIBUTION DETAILS? ........................................................................... 11

11. HOW DO I FILL IN MY INSURANCE RELIEF DETAILS? ..................................... 13 12. HOW DO I FILL IN MY PAYE CREDITS, ADVANCE TAX AND OTHER WITHHELD

TAX DETAILS? ............................................................................................................ 14 13. HOW DO I SUBMIT MY RETURN? .......................................................................... 15

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1. ABBREVIATIONS IN THE DOCUMENT

DRP Detailed Report HOSP Home Ownership Saving Plan IT1 Individual Return ITMS Integrated Tax Management System KRA Kenya Revenue Authority P9A Tax Deduction Card PAYE Pay As You Earn PIN Personal Identification Number TSW Taxpayer Software W44 Withholding Tax Certificates

2. INTRODUCTION

Under sec. 52B of the income Tax Act ( Not withstanding any other provisions of the Income Tax Act), every individual chargeable to tax under this Act shall for any year of income, furnish to the commissioner a return of income, including a self assessment of his tax from all sources of income, not later than 30th June. If you do not submit the Return by this date you will be liable to a penalty at the rate of 5% of the net tax due for every period of 12 months or part thereof, minimum penalty being Ksh1, 000. This document will guide you on how to file your return directly on-line.

This online guide will help in filing the entire return, but it is highly recommended that you use the return filing software TSW- if you are declaring income that is not employment income and requires completing detailed reports- DRPs- which requires more time If indeed you have no income to declare in all the parts A-F, please proceed to Part G of the return.

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3. STEP-BY-STEP GUIDE FOR FILING IT1 RETURN ONLINE

To be able to file your IT1 return online, you will need to register as a user in ITMS. To register follow the steps in the online services step-by-step guide provided on the KRA website www.kra.go.ke/portal

4. GETTING STARTED

To complete your return you will need the following documentation where applicable: Form P9A from Employer. The employers PIN. Request PIN from your employer if not already on the P9A. Financial statements for the following incomes; business income, farming income, rent

income. Mortgage Interest Certificate and PIN of lender Insurance Premium Certificate and PIN of underwriter Withholding tax certificates (W44) Any other documentation relating to income you received or deductions you want to

claim

Download the step by step guide for registration to ITMS.

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5. HOW DO I LOGIN TO ITMS TO FILL MY RETURN?

To login do the following: a) Access the KRA portal www.kra.go.ke/portal b) Select the link Tax Returns Processing c) Login by providing your credentials i.e. Identification (PIN) and password

Select the link Tax Returns Processing.

Enter your PIN

Enter your password

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6. HOW DO I FILL IN MY RETURN ONLINE?

To fill in your return online, use the following steps: a) Select the Tab Tax Return b) Click the link Fill in Tax Return c) Select the return type e.g. Income Tax individual d) Select the year e) Click the button Fill Tax Return f) Enter your ID number, your employers PIN.

NB If declaring wifes income, type (YES) in the appropriate field and provide her PIN. If declaring separately type (NO).

1) Select the tab Tax Return

2) Click the link Fill in Tax Return.

Click here to select the Return Income Tax Individual

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Click here to select the year

Click Fill Tax Return

3) If declaring income on behalf of wife; type YES and enter her PIN. If not type NO

1) Enter ID number

2) Enter your Employers PIN

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7. HOW DO I FILL IN MY INCOME DETAILS FROM SPECIFIED SOURCES?

The body of the return is divided into parts A-K Part A- F: These parts are for the various specified sources of income, other than employment income. That is, business income (A), income from farming (B), income from rent(C), interest income (D), insurance commission (E), and other income (F).

i) First row in each section A-F (row 11, 21,31,41, 47, 57) requires that you fill a detailed report found by clicking the label DRP

ii) Fill in partnership profit/loss on the second row of each of these parts (field 13, 23, 33, 43, 49 and 59) where applicable.

iii) Fill in loss brought forward from previous year on the fourth row (field 17, 27, 37, 53 and 63) of each section where applicable.

iv) If you have no income to declare in any of the above parts (rows), please leave blank and proceed to the next part.

v) If indeed you have no income to declare in all the parts A-F, skip the entire part and proceed to Part G.

NB: o Do not use brackets or negative signs to denote losses or expenses. o For any part that has a detailed report (DRP), fill in details appropriately then click

Calculate then Submit to proceed.

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8. FILLING THE DRP IN PART A-F

To fill the DRP, click the button DRP

o Once you click the button DRP|, the detailed report on page 8 appears; fill in the relevant fields as per your financial statement. Then click Calculate, then Submit to proceed.

Click here to fill DRP

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Click Calculate then Submit

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9. HOW DO I FILL MY EMPLOYMENT INCOME DETAILS?

Part G: Employment income In this section enter all your income from employment. Supply all the details as contained in the support/reference documents. Field 68: Enter gross pay Field 70: Enter benefits from employment (other than car and housing) e.g. telephone, domestic servant etc Field 72: Value of car benefit Field 74: Enter value of housing if housed by employer Field 76: Enter pension income (Pensioners only)

Value of Car benefit DRP

Fill in all the columns as required then click Calculate, then Submit to proceed. For body type enter details as follows:

For a saloon/estates car enter 1 For Pick Up, Uncovered Panel Van enter 2 For a Land Rover/Cruiser enter 3

Click here to fill Value of car benefit


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10. HOW DO I FILL IN MY PENSION CONTRIBUTION, MORTGAGE INTEREST OR HOSP CONTRIBUTION DETAILS?

Part H: Total Taxable Income This calculates your total taxable income. Field 82: Enter your actual pension contribution from form P9 Field 84: Enter Mortgage interest (DRP) from mortgage certificate Field 86: Enter contribution to Home Ownership Savings Plan Note:

1. You are only allowed to claim EITHER Mortgage interest OR contribution to Home Ownership Savings; but not both.

2. If you are filing as husband and wife you can ONLY claim on one mortgage account.

The mortgage Interest DRP below appears; fill in the details appropriately then click Calculate, then Submit to proceed

Click here to fill the mortgage details

Click here to fill the Home Ownership Saving Plan DRP


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The Home Ownership Savings Plan (HOSP) DRP appears: fill in details from HOSP certificate then click Calculate, then Submit to proceed


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11. HOW DO I FILL IN MY INSURANCE RELIEF DETAILS?

Part I: Tax computation Field 94: Enter Insurance relief where applicable

The Insurance relief DRP appears; fill in details appropriately then click Calculate, then Submit to proceed

Click here to fill the Insurance Relief


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12. HOW DO I FILL IN MY PAYE CREDITS, ADVANCE TAX AND OTHER WITHHELD TAX DETAILS?

Part J: Final tax Field 99: Enter PAYE credits from P9 (Employees only) Field 100: Enter advance tax credits from the receipts N/B Advance Credit will be given only where you have declared income from transport business. Field 101: Enter Withheld tax

The Advance Tax DRP appears; fill in details appropriately then click Calculate For Usage enter details as follows:

For Vans, Pick-ups, Trucks and Lorries enter 1 For Saloons, Station-wagons, Minibuses, Buses and Coaches enter 2

Enter your PAYE credits here

Click here to fill in the Advance Tax


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PART K In this part you will be required to enter value of Total Installment Tax Paid.

13. HOW DO I SUBMIT MY RETURN?

Once you complete filling your return follow the steps below to submit: I. Press calculate; should there be an error in the return, a message will appear at the bottom

of the return describing the error. Correct the error then press calculate again. II. Check the box to declare that the information you have filled is a true reflection of your

income III. Submit the return by pressing the Submit button

Enter the total Installment tax paid

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Once you submit successfully a message appears informing you that your request has been processed successfully.

If there is payment to be made, select the link Confirm E-Slip. If no payment is to be made then the only option available will be Display Tax Return.

Documents

Kra Taxation