Traditionally, the deadline for filing taxes for the previous year in Kenya is usually 30th June via the itax portal online method. However, to file KRA returns for ITR employment income for 2020 using P9 will be a little different than the other previous years.
Users who attempted to file KRA returns for 2020 using online method encountered an error message that required them to file through the Offline Return.
To file your Individual Income Tax Resident (ITR) Return for the Year 2020, kindly follow the steps below:
- Log onto the i-Tax profile with your PIN and password
- Go to the Returns menu, select ‘File Return’, choose Tax Obligation as ‘Income Tax – Resident Individual’ then click ‘Next’.
- Download the Excel/ODS Template using the link provided.
Steps to file the excel offline return template
- Provide all the mandatory details for ‘Basic_Info’ sheet of the return and click on ‘Next’ to proceed.
- Provide the details of the employment income for the year in Section F (Employment Income) that is starting from row A3 to G3.
- In column H (H6 – H9) of Section F specify the gross income which was earned between January to March and April to December together with their respective pension contributions as per the P9 Form issued by the employer. (NB: NO Business Income Should Be Declared Here).
4. Proceed to Section M (Details_of_PAYE_Deducted) and fill the PAYE details as per the P9 Form for the whole year.
5. For taxpayers with Mortgage Interest, the extra sheet that opens when this option is selected (Section Computation Mortgage) should be completed based on the mortgage interest paid for the period January – March 2020 and April – December 2020 respectively.
6. For taxpayers with House Ownership Savings Plan (HOSP), the extra sheet that opens when this option is selected (Section K_Home Ownership Savings Plan) should be completed based on the HOSP contribution for the period January – March 2020 and April – December 2020 respectively.
7. Proceed to section T (Tax Computation) and capture the total pension for the year in line 11.1 and ensure it adds up to the amount declared under sheet F for January to March 2020 and April to December 2020.
Capture the Personal Relief for the year in line 12.6 to a maximum limit of Kshs. 25,824.
8. Click ‘VALIDATE’ to validate the return and generate an upload file for uploading to i-Tax once you have confirmed the tax due/refund.
9. Taxpayers with Business Income will complete the necessary sections as usual (e.g. Profit and Loss, Balance Sheet) when they answer ‘Yes’ to the question ‘Do you have any income other than business income’ in the Basic Information section.
10. Navigate back to the Returns Menu, select ‘File Return’, choose Tax Obligation as ‘Income Tax – Resident Individual,’ then click ‘Next’ and click on browse to upload the zip file and submit your return.
Source: Step By Step Guide For Filing Income Tax Resident Returns For 2020 By KRA