How to File your KRA Returns [2022 Update]

In this post, I will show you, step by step, how to file your KRA tax returns in 2022. We will do the following;

  • How to file KRA Nil tax return
  • How to file your KRA tax returns using a P9 form
  • How to file KRA tax returns for people who have a tax exemption certificate

Table of contents

  • Prerequisites.
  • How to file KRA nil returns
  • How to file KRA returns using a P9 form
  • Macros Settings
  • Basic Information tab
  • Details of Employment income tab
  • Details of PAYE tab
  • Computation tab
  • How to file KRA returns for people who have a tax exemption certificate
  • Upload the document and file returns
  • conclusion

1)Prerequisites

Get the following its tohelp you file your KRA tax returns;

  • An active internet connection.
  • Your KRA PIN.
  • Your KRA portal password or the email linked to your KRA PIN.
  • A P9 form for people who have a monthly payslip. You can get this from your employer or company’s online portal. We are using a TSC P9 form for this pictorial.
  • Tax exemption certificate for people living with disabilities.

To start off, visit the KRA portal and log in. If you do not remember your password, there is no need to worry. You can easily reset your password as shown below.

On the KRA portal, enter your tax PIN and click on continue. On the subsequent page click on forgot password. The system will load a new page for you and then autofill the PIN you had input earlier. 

Click on submit.

Check your email to get a new password that KRA will send. This is a one-time password. Log into your account on the portal and use this password to create a password that you will remember. 

Now that you have successfully logged in, it is time to file your returns.

2)How to File KRA Nil Tax Returns

Filing nil returns means that you don’t have any income to declare during the year in question. The process is as follows.

Login to your account on the KRA portal, hover your mouse on the returns tab, and select file nil tax returns as shown below.

Select your tax obligation and click on next.

Click the submit button to file your KRA returns and download your receipt.

3) How to file KRA returns using a P9 form

On your portal, hover your mouse over the returns menu and click on returns. This will bring you to a page where you can declare your tax obligation. Select your tax obligation and click next. Download the excel .zip file provided. Extract and open the file as shown below.

Macros Settings

If you get an error while opening the document, take the following steps before you proceed;

  • Click on the File tab and locate the Options button at the bottom.
  • Click on the Trust Center button and click the Trust Center Settings button.
  • Click on Macros settings on the left-hand side and select the option Enable all Macros
  • Restart Excel or re-open the document.

Now that you have your Excel workbook ready, it is time to dive into the business end of things. On the document, locate the tab labeled Basic Info. For people who have tax exemption certificates, see the next section to find out how to fill in the extra details, then continue from here.

Basic Information

Under Basic Info,  fill out your tax pin and select original as your tax type.

The KRA Return Period refers to the period we are filing returns for. Every year we file returns for the year before. In June 2022 the tax period is from 01/01/2021 to 31/12/2021.

Fill in your bank details in section A, part 2.

For everyone else, aside from people with tax exemption certificates, leave everything else as-is on the tab and click next. Ensure that you fill in your details correctly to avoid errors.

Details of Employment Income

On this tab, fill in your employer’s tax PIN and name. Get the PIN from your P9 form or your employer directly.

Move to the Gross Salary/Taxable income column (Column A) and fill in your gross salary from your P9. 

The figure you are looking for should be on the first column of the P9, as shown below. 

If your employer gives you any allowances denoted on the payslip, indicate them in column B, if not, use zero to fill the gap. Do not leave it blank! The same goes for columns D and E. 

Scroll down and click next to move to the next tab.

Details of PAYE Tab

Pay close attention to this section to avoid errors while validating.

First of all, enter the PIN of your employer in the first tab and then fill in your taxable/gross pay.

For the column on Taxable Pay on Taxable Salary, the value is obtained by adding your total PAYE to your total MPR value. Both these values are on the P9 form. 

The next column, Amount of Tax Deducted or PAYE, requires that you fill in the total PAYE from your P9 form as shown below.

Move on to the computation section.

Computation Tab

The computation tab is straightforward because you only need to fill out two sections, the Defined/ pension contribution, and the personal relief section.  Use the totals under Pension and MPR values provided in the P9 to fill out the two gaps.

Scroll down to the bottom of the tab and check on Tax due/ Tax Refund Due.  

A positive value indicates that you owe the Kenya Revenue Authority some tax, make the necessary arrangements and visit the Huduma center to get help.

A negative value indicates that you are eligible for a tax refund. 

Click on validate and wait for excel to prepare a file for you. If there are errors, use the error tab to find and fix your mistake.

How to File Tax Returns for People who have Tax Exemption Certificates

If you have a valid tax exemption certificate, the process is similar to the one described above with a minor alteration. 

For the KRA portal to identify Tax Exemption status, head on to the Basic Info tab and scroll down until line 16, to activate the option. 

Line 16 asks for your tax exemption status, toggle this option to Yes then scroll down until you find section 3. Here you will be required to fill in your Tax Exemption Certificate number. Find your tax exemption certificate number at the top right of your certificate of exemption.

Save this information and fill out the rest of the document as shown above and click validate.

Upload Your Document

Log in to your KRA portal, hover your mouse on the returns tab and click file returns.

Select tax obligation as Resident Individual and tap on next. 

Click on choose file and navigate to your default documents folder, locate the newly created zip file, and double-click to select. 

Agree to the terms and conditions and click submit. Allow the portal to upload the document and generate a receipt. 

Download the receipt if you wish to.

Conclusion

As the tax season approaches, take time to file your tax returns to comply with government policy and avoid tax penalties.

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