Complete KRA PAYE Income Tax & iTax Filing Guide
In Kenya, every employee earning above KES 24,000 monthly is subject to Pay As You Earn (PAYE) income tax. With recent statutory overhauls, your monthly net pay is impacted by three key pillars: KRA PAYE tax, the 1.5% Affordable Housing Levy, and the 2.75% Social Health Insurance Fund (SHIF).
Step-by-Step Guide on How to File Your Annual KRA Returns:
- Log in to the official KRA iTax portal using your KRA PIN and password.
- Download your P9 Form from your employer, which details your Gross Salary, pension contributions, and total tax paid.
- Click on the Returns tab and select 'File Return'. Choose your tax obligation (Income Tax - Resident Individual).
- Download the excel return sheet, fill in the P9 numbers precisely, generate the zip upload file, and submit it on iTax.
- Ensure returns are filed before the annual June 30th deadline to avoid late filing penalties of KES 2,000.