Every year, all Kenyans with KRA PINs are expected to file their returns for the previous year, to prove that they are tax compliant. Those who are unemployed, have no business or still students, should file nil returns. Failure to file returns attract a penalty of Kshs. 2000.It is therefore the responsibility of each individual to ensure that his/her returns are filed properly.
Teachers contracted by the Kenya national examinations council as examiners, supervisors, invigilators and center managers face a lot of difficulty while filing their returns since their proceeds from KNEC are also sliced by the tax man. KNEC sends a withholding certificate to KRA, indicating the amount of tax withheld. KRA updates the amount on contracted professional’s ledger in his/her iTax account and e-mails him/her a copy of the withholding certificate.
The contracted professional is then expected to factor the withholding tax amount while filing his/her returns.
The step by step procedure below gives the simplest guideline on how to file KRA returns by those who have a withholding certificate.
- Once you have downloaded the excel spread sheet from your iTAX account, file your returns the normal way to obtain the withholding tax credit amount. This means that you must declare under basic information row 7 that you do not have another source of income. Do not validate at this point
- In the Excel spread sheet under ‘Basic Information’ row 7 click ‘yes’ from the Dropdown menu. Some tabs will automatically be added onto the sheet.
- Proceed to the ‘Profit and Loss account’. Go to row 1.2 and navigate to ‘Commission’. Under commission, type the withholding tax amount as indicated on the withholding tax certificate. You can get the withholding tax certificate from your email or your ledger account in your iTax account.
- Proceed to the Balance Sheet tab. Go to row 1.5(Other Assets) and type 1.0. Still balance sheet in row 7.2.2(Other loans), also type 1.0
- proceed to the last tab (Tax computation). Go to row 13.4 and enter the withholding tax credit amount.
- validate and upload to produce receipt.