Frequently asked questions on filing

1. FILING FAQS

2. Why does KRA force PIN holders without an income to file a Nil return?
A nil return is a return recognized in the law
What action should one take in case they realize that their employer does
not remit their PAYE to KRA yet the same is deducted on their salaries?
The employees should report the incident to the nearest KRA office for action
against the employer

3. The Introduction of the M-Service Application.
The iTax platform had been enhanced to capture the various tax rates which
were in effect for the 2020 year of income.
Prepopulated employment income only return.
What new technological deployments does KRA have in place to facilitate
the annual tax returns filing exercise this year?
Are taxpayers living with disabilities required to file tax returns?
Yes, Persons living with disabilities are required to file tax returns. The only
advantage they have is that they have been exempted by law from paying tax on
their first Ksh. 1.8M p.a or Ksh. 150,000 p.m on their incomes. However, they are
required to obtain a tax exemption certificate for this to be effected.

4. For Individuals, Late filing of income tax individual returns attract a penalty of 5%
of the tax due or Ksh. 2000 whichever is higher. In addition, the late payment of
tax attracts a penalty of 5% of the tax due and an interest of 1% per month.
For non-individuals, the late filing of Income Tax Company or partnership returns
attract a penalty of 5% of the tax due or Ksh. 20,000 whichever is higher. In
addition, the late payment of tax attracts a penalty of 5% of the tax due and an
interest of 1% per month.
Who exactly is required to file a tax return before June 30th?
All individuals, partnerships and companies with year ending 31st December who
have income tax
What is the penalty for taxpayers who fail to file their tax returns by the
stipulated timeframes?

5. The filing of annual income tax return is not a repetitive process. This is because the
law obligates the employers to file the PAYE return for their employees.
It also requires each and every person to conduct a self-assessment tax returns to
account for their incomes.
In addition, the annual return exercise provides an opportunity for persons with
more than one source of income to declare other incomes besides the employment
income for taxation purposes.
Some Kenyans with employment income find the call to file their annual tax
returns a repetitive exercise on the account that their employers filed the
Pay As You Earn (PAYE) monthly returns during the year of income under
review. Is the exercise a repetition as argued?

6. There are Kenyans who registered for KRA PINs for purposes of applying for a
higher education loan and being students, they probably did not have any
income during the past year. Are they still required to file a tax return?
Yes, persons who did not have a source of income are required to file a nil return to
show that they did not have any source of income.
Apart from being penalized, how else can failure to file tax returns be
detrimental to a taxpayer?
Failure to file tax return can be detrimental in the sense that you can be denied the tax
compliance certificate which is a crucial document used for various public and private
institutions, businesses and jobs. Also, the imposition of interests which accrue at the
rate of 1% per month on the principal tax can hugely affect the tax debt of a person and
can lead to legal action such as investigations to recover unpaid taxes.

7. Will the tax relief measures introduced last year to cushion citizens from
the impact of the pandemic affect returns filing this year?
No.
Given the prevailing pandemic that’s restricting physical engagements,
how is KRA prepared to support taxpayers online this season?
KRA has offered support in a number of ways; first, we are providing tax filing
training to the various sector groups and taxpayers at large on how to file the
returns. KRA has also provided online support through the active call centers which
receive and respond to any tax related queries. The step by step guide is on the
KRA website.