Filing your annual income tax return on iTax without the rush

Who has to file, and by when

Every person with a KRA PIN is expected to file an annual income tax return, including people with no income for the year, who file a nil return. Individual returns for a calendar year are due by 30 June of the following year.

Companies file a corporation tax return by the end of the sixth month after their accounting year-end, so a December year-end means 30 June. The tax itself can fall due before the return, so confirm the payment date that applies to your year-end and plan the cash early.

Gather the documents first

Employees need the P9 form from each employer for the year. Businesses need final accounts, a tax computation and the withholding tax certificates issued to them by customers, because tax already withheld reduces what is still payable.

Reconcile before you file. Check that the PAYE on each P9 matches what your employer remitted, and that every withholding certificate you claim appears on your iTax ledger. Differences are the most common reason a return is queried.

File, pay and keep the evidence

File on iTax, generate the payment slip for any balance and pay through a bank or the mobile money option shown on the slip. Keep the acknowledgement receipt, the payment slip and your working papers together, since you may need them for a review or a Tax Compliance Certificate.

Late filing attracts a penalty of 5% of the tax due or a fixed minimum (KES 2,000 for individuals and KES 20,000 for companies at the time of writing), whichever is higher, and late payment attracts a further penalty and monthly interest. Check the current rules on KRA's website before you file.

Make next year easier

Keep a running folder through the year for P9s, withholding certificates, receipts for reliefs and correspondence. A return prepared from organised records takes hours instead of weeks.