Every qualifying citizen must pay taxes. The Kenya Revenue Authority launched the iTax system to make tax remittance a lot easier. It was a huge relief compared to before when long queues were the order of the day.
Unfortunately, the new system does not benefit the majority of Kenyans. Indeed, those with limited computer skills still have to pay to remit their taxes. For this reason, the sight of ‘File your tax returns here’ is nothing new around the country.
It is a pity the iTax system is so easy to use, yet very few take advantage.
That is a topic for another day. Today we focus on what a person needs to follow the demands of the systems.
To access the iTax system services, the taxpayer must log onto the Kenya Revenue system iTax Portal. An individual or corporate tax identity serves as the lock and key.
The Kenya Revenue Authority Personal Identification Number (PIN) and password do the trick. A new qualifying taxpayer must thus register with the authority to receive their PIN.
Upon logging in, the taxpayer should update their profile. This involves providing the latest applicable information. The up-to-date information may relate to the current address, salary, or even family size. By entering any missing information.
The systems then generate an updated PIN Certificate featuring the new information. This certificate is often in PDF format, usually sent to one’s email address for easy access.
Filing of returns
Using the iTax system, the taxpayer will be able to file all returns online, at their convenience.
Log on to the iTax system and access the tax returns section. The taxpayer then selects their applicable tax obligations. For an individual taxpayer, the Value Added Tax or Pay as you Earn options are most common.
The taxpayer then downloads the completed tax return form and save it on their computer. Proceed to fill in the form offline, providing the required information as applicable.
Upload the completed form to verify the accuracy of the shared data. If accurate, the taxpayer receives an immediate acknowledgment. This acknowledgment confirms that your tax returns filing was successful.
Payment of taxes
After the successful filing of returns, the taxpayer must now make the tax payment to the KRA. To do so, access the new payment gateway and fill in the necessary payment details.
The actual payment is now more accessible as well, thanks to the KRA partnering with up to 24 commercial banks. The banks help guarantee both efficient and convenient tax remittances.
Of the 24 partnering commercial banks, the four major banks lead the way. The Kenya Commercial Bank, Equity, Co-operative and Barclays Bank lead the way. With so many payment points around the country, tax remittance is no longer as strenuous.
The process is not complete yet
Fill in the payment details, generate a payment slip and present it to your chosen bank for payment. You can make payment using cash, check or any Real Time Gross Settlement (R.T.G.S.). Once processing is complete, the KRA acknowledges the payment through email.
A taxpayer acquires the tax compliance status under the following conditions;
- You have filed tax returns for registered obligations.
- You made timely payment of the assessed taxes.
- You declared the correct income amount.
In this regard, the iTax system helps you achieve compliance with little effort.