Introduction.
As a responsible Kenyan citizen or business owner, it is critical to meet your tax duties on time. Filing withholding tax returns with the Kenya Revenue Authority (KRA) is an important part of tax compliance. Filing these taxes accurately and on time helps you maintain a positive relationship with the IRS and avoids any penalties. In order to file your withholding tax returns accurately, you will have to follow the following steps:
Learn the Fundamentals of Withholding Tax:
Before beginning the filing procedure, it is critical to understand what withholding tax is. Withholding tax is a form of tax that is deducted by the payer at the source of income and deposited directly to the Kenya Revenue Authority (KRA) on the taxpayer’s behalf. This is a tool used by the government to collect taxes and ensure that tax regulations are followed. KRA uses withholding tax to collect income tax at the source, that is, by deducting tax from payments made to suppliers, contractors, or service providers. The deducted tax is then sent to the tax authorities on the recipient’s behalf.
Collect the necessary information:
Gather all required information ahead of time to ensure a smooth start to the filing procedure. You will need the following information:
- KRA PIN: Make sure you have your KRA Personal Identification Number (PIN) readily available.
- Withholding Tax Certificates: Gather all of your clients’ or customers’ withholding tax certificates. These certificates serve as verification that taxes have been deducted.
- Supplier/Contractor Data: Gather information about the suppliers or contractors from whom you deducted tax, such as their names, KRA PINs, and amounts paid.
Filing KRA withholding tax returns does not have to be a chore. You can ensure a simple and hassle-free filing procedure by learning the basics, acquiring the relevant information, and following the step-by-step guide offered in this blog. Remember that completing withholding tax returns on time and accurately displays your dedication to tax compliance and contributes to Kenya’s transparent and effective tax system.
You must use the KRA iTax portal to file your withholding tax returns. Log in to your iTax account using your KRA PIN and password at the KRA website (www.kra.go.ke).
Navigate to the “Returns” Section:
After logging in, go to the “Returns” tab on the iTax portal. From the drop-down option, choose “Withholding Tax Returns.”
Fill in the Required Details:
Upon filling, you must supply the following information on the withholding tax returns page:
- Tax Obligation: Select the appropriate withholding tax obligation, such as WHT – Resident Individual, WHT – Resident Company, or WHT – Non-Resident.
- Return Period: Indicate the time period for which you are filing returns (for example, monthly, quarterly, or annually).
- Taxpayer Information: Ensure that your personal or business information is correct and up to date.
- Withholding Tax Certificates: Enter the information from the received withholding tax certificates, such as the certificate number, date issued, and tax deducted.
Declare and Submit the Returns:
After keying in all of the needed information, carefully examine your entries to guarantee accuracy. When you’re finished, click the “Declare” button to submit your withholding tax returns.
Acknowledgment and Payment:
After submitting successfully, you will receive an acknowledgment receipt. This receipt verifies that your returns were successfully filed. Remember that simply filing the returns is not enough; you must also remit the withheld tax amount to the KRA within the time frame indicated.
Maintain Records and Follow Up:
Keep a copy of the acknowledgment receipt for your records. It is also a good idea to preserve duplicates of withholding tax certificates and any other supporting documents linked with the returns. If you have any questions or need clarification, please contact the KRA as soon as possible.
Conclusion.
Filing KRA withholding tax returns does not have to be an elephant task in the room. You can ensure a simple and hassle-free filing procedure by learning the basics, acquiring the relevant information, and following the step-by-step guide offered in this blog. You can also contact Frimor Safe Way Solutions who are always available 24/7 to help you with computing your taxes. Remember that completing withholding tax returns on time and accurately displays your dedication to tax compliance and contributes to Kenya’s transparent and effective tax system, thus enabling you to evade unnecessary penalties.