Tedious paperwork plus long queues are back, notwithstanding a non-responsive website portal for online taxpayers. The Kenya Revenue Authority (KRA) Commissioner General John Njiraini has disclosed that the amendments made through Finance Bill 2012 will require all salaried employees to file and submit income tax returns with effect from calendar year 2012. This comes just two years after former finance minister Uhuru Kenyatta exempted employees from the tedious paperwork and left the task to employers.

The previous exemption allowed employees who have no extra source of income to avoid filing the returns.

Taxes and You

Every individual in Kenya chargeable to tax is required to furnish to the commissioner a return of income, including a self assessment of their tax from all sources of income, not later than 30th June for any year of income .

This is provided under Sec. 52B of the Income Tax Act (Not withstanding any other provisions of the Income Tax Act).  Those who do not submit the Return by this date are liable to a penalty at the rate of 5% of the net tax due for every period of 12 months or part thereof, minimum penalty being KES 1, 000.

For you to file your Individual Tax Returns (IT1) online, you will need to register as a user in Intergrated Tax mangement system (ITMS). To register, KRA has offered a step-by-step guide to help you use the online service.