Teachers Have Until 30th June To File Returns Or Miss Their Salaries

Teachers Have Until 30th June To File Returns Or Miss Their Salaries

Teachers Have Until 30th June To File Returns Or Miss Their Salaries

The Teachers Service Commission (TSC) boss Dr Nancy Macharia on 15th April 2021 issued a circular to teachers employed by the Commission as well as its secretariat staff. 

The commission’s Chief Executive Officer (CEO) Macharia through circular No. 5/2021 wrote to Principals of Secondary schools and Teacher Training Colleges, Secretariat staff, Headteachers of Primary Schools and Director Kenya Institute of Special Education (KISE), and Director Kenya Institute of the Blind directing all its employees to file their individual income tax returns for 2020 by June. 

“All TSC employees are required to file their individual income tax returns for the year 2020 through the KRA online ITax platform https://itax.kra.go.ke/ by 30th June 2021 as required by Income Tax Act,” stated part of a circular by Nancy Macharia. 

Teachers who encounter challenges in filing the returns were informed to seek assistance from Kenya Revenue Authority (KRA) service centres or telephone 0711099999 or email KRA through callcentre@kra.go.ke 

Teachers employed by TSC who fail to file KRA tax returns on time risk missing payment after the authority intensified its penalty for the offence. 

Kenya Revenue Authority (KRA) warned that Kenyans who fail to file their tax returns before the June 30th deadline will lose their KRA pins. 

For teachers to get their pay they must primarily be subjected to taxation and for this, they must possess a KRA pin to make it possible. Their payment will be withheld in case their KRA pins are revoked for not paying taxes. 

KRA reissued a new notice stating that persons who have already failed to file their individual tax returns without giving an explanation will lose their pins after the end of a 30-day window. 

“Failure to file returns, unless cause is shown to the contrary, the Commissioner of Domestic Taxes shall have their personal identification numbers (PINs) de-registered and cancelled from the KRA system,” read part of the notice. 

“Failure to file returns, unless cause is shown to the contrary, the Commissioner of Domestic Taxes shall have their personal identification numbers (PINs) de-registered and cancelled from the KRA system,”

About 7,107 individual accounts are set for cancellation with a majority, comprising of companies, schools, and self-help groups. The planned de-registration and cancellation of the pins are part of KRA’s move to enforce tax return compliance. 

KRA has urged taxpayers to take advantage of its continuing voluntary tax disclosure program (VTDP) to rationalize outstanding tax payments and meet the filing provision. 

“Taxpayers are also encouraged to take advantage of the Voluntary Tax Disclosure Program and apply, disclose and pay their outstanding liability with relief on interest and penalties,” said KRA. 

KRA pins are a requirement for anyone who intends to open bank accounts, apply for job applications, or even register land therefore losing them may have detrimental effects.

How to File All Types Of KRA iTax Returns Online in Kenya

The iTax online platform has facilitated the life of the taxpayers in meeting various tax-based duties. In Kenya, every registered taxpayer with a Personal Identification Number (PIN) obtained from the Kenya Revenue Authority (KRA) must file tax returns every financial year. 

Those who have no business or not in gainful employment must file nil KRA tax returns. Based on your tax obligation, you need to choose the right type of iTax returns and file. The iTax filing system is designed to accept the various type of KRA returns as follows:

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Types of KRA returns

  • KRA iTax return forms for Resident Individual – Income Tax
  • KRA iTax return forms for Non-Resident Individual – Income Tax
  • KRA iTax return forms for Company – Income Tax
  • KRA iTax return forms for Partnership – Income Tax
  • KRA iTax return forms for PAYE – Income Tax
  • KRA iTax return forms for – Turnover Tax – Income Tax
  • KRA iTax return forms for Value Added Tax (VAT)
  • KRA iTax return forms for Excise

Let us explain each of the above-mentioned KRA return forms.

KRA iTax return forms for Resident Individual

This KRA tax return applies to all the resident individuals who are taxed on the whole income earned in respect of any employment or services rendered in Kenya or outside Kenya. 

This includes any other income that has accrued in or derived from Kenya.

To file returns, the resident individual needs to choose ‘Income Tax – Resident Individual’ from the KRA tax return types in the iTax online portal.

KRA iTax return forms for Non-Resident Individual

For Non-resident taxpayers, the income earned from within Kenya or derived from Kenya is taxable. A Non-Resident Individual needs to select ‘Income Tax – Non-Resident Individual’ from the KRA tax return types in KTA online returns.’

KRA iTax return forms for Companies

The type of income tax levied on corporate bodies is known as a corporate tax. This will be levied on corporates such as limited companies, trusts, and co-operatives. 

The resident companies are taxable at the rate of 30% while non-resident companies are taxable at the rate of 37.5% on their taxable profits. To file the returns in the KRA iTax Online portal, these companies need to select ‘Income Tax – Company’ in the type of KRA tax returns.

KRA iTax return forms for Partnership

Partnership income is not taxable for Income Tax purposes. This is because the share of partnership income is taxable in the hands of the partner at the prevailing individual income tax rates. 

The income is not taxable at the entity level, preferably, it is taxed in the hands of individual partners. Though the income is not taxed at the entity level but as a partnership firm, you need to file a separate partnership return. To file a partnership return, you need to select’ Income Tax – Partnership’ in the KRA iTAX return menu.

KRA iTax return forms for PAYE

PAYE stands for ‘Pay as You Earn’. It is a method of tax deduction by the employer on employee’s salaries or wages and applies to all income from any office or employment. It applies to weekly wages, monthly salaries, annual salaries, bonuses, commissions…etc.

The tax deducted should be paid every month and the employer needs to file a return disclosing the details of the tax deducted. To file iTax PAYE returns, you need to select the ‘Income tax – PAYE’ in types of KRA iTax returns.

KRA iTax return forms for filing turnover tax

To provide simpler compliance for small businesses, the government has launched a tax scheme known as ‘Turnover Tax’. This applies to businesses that generate an income of between KSh 500,000 and 5,000,000. 

The businesses opting for turnover tax need to pay tax at a fixed rate on gross income earned by them. Paying tax under the turnover tax scheme, you need to select ‘Income Tax – Turnover Tax’ in the KRA tax return menu to file your iTax returns online.

KRA iTax return forms for filing VAT returns

All the businesses with KSh 5,000,000 or more in the last 12 months or anticipates to attain the KSh 5,000,000 are mandated to register under VAT. The Act also offers voluntary registration where a taxpayer chooses to register despite the turnover falling below Kshs.5,000,000. 

VAT Registered businesses must declare the details such as VAT charged on sales, VAT paid on purchases, etc. by filing monthly VAT returns by the 20th of the succeeding month. To file a VAT return in Kenya, you need to select ‘VAT Returns’ in the iTax tax return menu.

KRA iTax return forms for filing Excise returns

Excise duty is imposed on notified goods manufactured or imported into the country. Different excise duty rates depend on the product imported or manufactured. 

The details of excise duty levied should be declared in monthly excise return on before 20th of the subsequent month. To file an iTax excise return, you need to select ‘Excise’ in the KRA tax return type.

How to file KRA iTax returns online?

The steps to filing KRA returns is relatively common for all type of returns, be it your income tax for an individual, income tax for corporates or filing VAT returns. The only different thing is the details which you need to furnish and the format for submitting.

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For instance, the type of details and format for filing KRA returns for income will be different from filing VAT returns but the steps to file returns will be more or less similar.

The following are the steps for filing KRA returns.

  • Visit the iTax filing portal using https://itax.kra.go.ke/KRA-Portal/
  • Login to the iTAX portal with PIN and password.
  • Click on ‘e-Returns’ or select ‘Returns’ from the navigation menu and click on ‘File Returns’.
  • Select the Type, Enter your taxpayer’s PIN and selects the Tax obligation applicable to you, and click ‘Next’.
  • Based on the tax obligation you have selected, it opens the relevant tax form. For example, if you have selected ‘VAT’ as your tax obligation, it will open the VAT return form.
  • This page will take you through the filling process and will have detailed instructions to file tax returns.
  • The instruction will also have links to download the tax returns form in Excel or ODS format. Click the relevant link to download the template and save it on your computer.
  • Fill in all applicable areas in the downloaded tax returns form and save your document on your computer.
  • Make sure you enable macros to be able to ‘Validate’ and Zip your File.
  • Go to the iTax tax return filing page and select the period for which you are filing the returns.
  • Upload the zip file and agree to the terms and conditions by ticking the checkbox.
  • Finally, click the ‘Submit’ button to upload the returns and click ‘OK’ for the pop-up message ‘Do you want to upload the form’

On filing KRA Returns, an e-return receipt will be generated with the message return submitted successfully along with the acknowledgement number.

Teachers Have Until 30th June To File Returns Or Miss Their Salaries

Teachers Have Until 30th June To File Returns Or Miss Their Salaries

Teachers Have Until 30th June To File Returns Or Miss Their Salaries

Teachers Have Until 30th June To File Returns Or Miss Their Salaries

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