Introduction to KRA Tax Returns
Filing KRA Income Tax Returns is a mandatory requirement for all Kenyan taxpayers. The KRA iTax and how to file returns, mistakes to avoid is a crucial process that ensures compliance with the Income Tax Act Cap 470. In this guide, we will walk you through the process of filing your tax returns for the 2025 year of income, which must be filed in 2026.
Deadline and Penalties
The filing window for the 2025 tax year is from 1st January 2026 to 30th June 2026. It’s essential to file your returns on time to avoid penalties. A late filing penalty of KES 2,000 or 5% of tax due (whichever is higher) will be charged. Additionally, a late payment penalty of 5% of unpaid tax plus 1% interest per month will be applied. Note that no extension is expected for 2026, so it’s crucial to plan ahead and file your returns before the deadline.
Documents Required
Before you start the filing process, ensure you have the following documents: KRA PIN and iTax password, P9 Form from your employer, bank statements, NSSF, SHIF/SHA contribution records, insurance premium certificates, mortgage interest certificate (if applicable), business income records and receipts (eTIMS-validated), and Withholding Tax certificates.
Step-by-Step Filing Process on iTax
To file your tax returns, log in to the iTax portal at itax.kra.go.ke using your PIN and password. Navigate to Returns → File Return, select the return type: Income Tax – Resident Individual (IT1), and choose the year of income: 2025. Download the Excel IT1 form, fill in your employment income, business income, rental income, and other income. Declare allowable deductions and reliefs, validate and upload the completed form, and download the acknowledgement receipt.
Filing a NIL Return
If you have no income, you can file a NIL return by navigating to Returns → File Nil Return → Income Tax Resident → Select period → Submit → Download acknowledgement.
Tax Reliefs and Deductions
When filing your tax returns, you can claim various reliefs and deductions, including personal relief, insurance relief, pension/NSSF contributions, mortgage interest deduction, SHIF/SHA contributions, Affordable Housing Levy deduction, and disability exemption. These reliefs can help reduce your tax liability, so it’s essential to claim them if you’re eligible.
Paying Tax Due
If you have tax due, generate a Payment Registration Number (PRN) on iTax, pay via M-PESA Paybill: 572572 (Account = PRN number), or pay via appointed KRA banks.
Alternative Filing Channels
In addition to the iTax portal, you can file your tax returns through the eCitizen platform, USSD: *222#, WhatsApp: 0711 999 999, KRA Contact Centre: 0711 099 999, or visit Huduma Centres and KRA Service Centres countrywide.
Common Mistakes to Avoid
When filing your tax returns, avoid common mistakes such as filing with incorrect P9 figures, forgetting to declare all income sources, not claiming available reliefs, filing multiple returns instead of amending, not keeping supporting documents, and ignoring outstanding tax balance.
eTIMS Validation
In 2026, KRA introduced eTIMS validation, which cross-validates all declared income and expenses against eTIMS data in real-time. Business expenses must be backed by valid eTIMS invoices or they will be disallowed.
In conclusion, filing your KRA Income Tax Returns is a straightforward process if you follow the steps outlined in this guide. Remember to file your returns on time to avoid penalties and take advantage of available reliefs and deductions. Don’t forget to use the KRA iTax and how to file returns, mistakes to avoid as a reference to ensure you comply with all requirements. Kwa ufupi, fanya hivyo mapema ili kuepuka adhabu! (In short, do it early to avoid penalties!).
