From August 2015 Kenya Revenue Authority KRA has issued a directive that all employers must file their Pay As You Earn PAYE payments using ITax no manual tax returns will be accepted.
This ITax guide forms a step by step guide for filling PAYE on ITax
Step 1: Log in to the ITax portal
Visit https://itax.kra.go.ke/KRA-PortalEnter your PIN, click Continue and type in your password and answer the security question to access your iTax profile.
Step 2 Download the PAYE P10 excel sheet from iTax .
The PAYE P10 excel sheet that you need to download is found under the “Returns” menu item.
Click on >> Returns >> File Returns
Click >> Income tax – PAYE
A new page will open where you will be able to download the PAYE P10 file.
To download the PAYE P10 file
Click >> PAYE form compatible with MS Excel 2007 to 2010 \
The file will be downloaded as a zip file.
Log out of the online Itax portal
The PAYE spreadsheet is available in both Excel format and Open Document Format (for Open Office). However, when we tested it the ODF format file we found that it was not working at all! So that seems that right now, the only way is to buy Microsoft Excel (original only) and use the excel version. Also for the smoothest operation we recommend that you do this on a Windows machine.
Step3: Enable MS Excel Macros
Open a new Excel file and follow the instructions below.
This is a one off step, once you do it once you don’t have to repeat it on the same computer
Click the Microsoft Office Button , and then click Access Options.Click Trust Center, click Trust Center Settings, and then click Macro Settings.Click Enable all macros (not recommended, potentially dangerous code can run)Click this option to allow all macros to run.Click ok.
Step 4. Fill out the details of the excel sheet and generate the output – zip file.
Open the zip folder downloaded from ITax portal.
Open the P10 Excel file.
Step 4.1 Fill the basic information
The first page is your basic informationFill as required and click 'NEXT'’.Type of return select original.The Entity type is headquarters..
Step 4.2 Fill in Sheet B Employees Details
The employees’ details can be filled on two ways
You can Fill in directly on the P10 Excel file orImport as CSV file on to the P10 Excel file.
4.2.1 Fill in Directly to the P10 Excel Sheet
This sheet is user friendly, all you need to fill all relevant details as asked for each column head except for the grayed columns which will be automatically filled by the excel sheet.
Some cells have a dropdown arrow to help you select the appropriate details.
Column R - Type of housing
When you select the appropriate type of house benefit in column R, you will notice that column Q which was grayed before, will now clear and you have to fill in the appropriate amount or zero.
Column AI - Self Assessed PAYE Tax
Note that you have to fill this column as per your computed payroll or pay slip.
The amounts on this column and the totals should be exactly the same as those in column AH PAYE TAX.
4.2.2 Import a CSV File
Where you have too many employees and you have a payroll or you keep your payroll on excel, you can export the payroll file to your desktop and save it as Excel CSV comma delimited file.
When saving the Excel CSV file, select “save as” then as type of file choose “CSV comma delimited”
You should also make sure that all columns in this file correspond to the ITax P10 Employee sheet you downloaded from ITax portal.
All columns that are grayed out on the ITax P10 excel sheet, should be left blank on the CVS excel file.
Before saving the file as CSV remove all column headings.
Make sure that if a cell does not have an amount it should be “ZERO” except for those columns that correspond to grayed columns in the P10 Excel ITax file, which should be left blank.
On the ITax P10 Excel file, Sheet B employees details sheet, click 'IMPORT CSV' button to import your CSV file
Select the CSV file saved above and click open.
Your employee details will then be populated on the ITax P10 Excel file Sheet B - employees’ details sheet.
Once uploaded peruse through the sheet to ensure everything is correct.
Should the file not be properly uploaded or where you get an error message peruse the saved CSV for any errors and correct them.
After the CSV has been successfully been uploaded click “next”
4.3 Other Employee Details Sheets C to Sheet J
All other employee sheets from sheet C to sheet J if applicable are filled the same way as the employee details sheet above.
If they are not applicable leave them blank.
4.4 Sheet D - Computation of Car Benefit
Where the employee is provided a car or one is hired for his use, this sheet should be filled with those employees details as per the sheet’s columns headings and the total taxable value should correspond to the amounts declared in Sheet B - Employees details for each respective employee.
4.5 Sheet K Payment Credits
If you had paid any PAYE in advance before the end of the month or before filling the PAYE return , fill in the respective payment details, otherwise leave this sheet blank.
4.6 Sheet L Tax Due
This sheet gives you a summary of the tax due. You countercheck this if it agrees with your payroll.
5.Validate
Once you are satisfied the tax due is ok click validate underSheet L Tax Due
The ITax P10 Excel file will then check for errors, if there are any it will direct you to second sheet from the left labeled “error”. Open it and click the respective links provided to open the particular sheet with errors for your corrections. After you make all corrections click validate again.
After you click validate, you will be asked if you want create an upload file, click ‘’YES’’.
The file will be saved as a zip file and a dialogue window will open to show you the exact location where it will be saved, in most cases it is saved in documents.
You should note down this location to enable you easily locate the file when uploading it online as per step 6 below.
Step 6: Upload the zip file onto ITax online.
Visit https://itax.kra.go.ke/KRA-Portal
Enter you’re your PIN , click Continue and type in your password and answer the security question to access your iTax profile.
Click on >> Returns >> File Returns
This will take you to the “e-Returns” page.
The type of “e-Return” and “Taxpayer PIN” will already have been filled out for you.
So proceed and select the “Tax Obligation”. In this case, it is the “Income Tax – PAYE” obligation.
This will take you to the “e-Returns” page. The type of “e-Return” and “Taxpayer PIN” will already have been filled out for you so proceed to select the “Tax Obligation”. In this case, it is the “Income Tax – PAYE” obligation.
Fill out the “Income tax – PAYE form” by selecting the “Return Period From”, the “Return Period To” will automatically be filled out as the system only expects you to do a return for one month at a time.
Click the upload button to upload the zip file onto iTax. Only click the Add File button if there is more than one file you want to upload, otherwise, proceed to check the Terms and Conditions and “Submit” the form.
If your uploaded file was correctly filled out, the system will successfully submit it and give you a “Returns Receipt” in form of a link. Otherwise, you will get an error message telling you what you had done wrong.
If you get an error message, simply go back and correct the PAYE spreadsheet then validate and save it a new. You do not need to use the “File Amended Return” menu item as technically, you had not successfully submitted the first time. Repeat the process and you will be fine.
Step 7. Return Receipt
“‘Returns Receipt” is in the form of a download link that you can click and download for your filing.
Note, you are not DONE with the process…all you have done is successfully submitted the Income Tax – PAYE form.
Step 8: Generate payment slip for the just submitted PAYE liability.
What now needs to happen is that you need to generate a payment slip for the tax obligation. The payment slip is what you will use to make a payment for this liability at the bank.
Proceed to click the Payment button.
A lot of the details on the e-Payment Registration form will already be filled out, proceed and fill what isn’t.
Confirm the “Liability Details” as this indicates what you are meant to pay. When all is good, select that liability entry and click the “Add” button.
The “Add” button from above adds the liability details to the “Payment Details”. This should then give you the total that you are meant to pay (there could be more then one liability that you are paying for).
Proceed to select the “Mode of Payment”; Cheque, Cash or RTGS and finally select the “Receiving Bank” – this should be the bank where you intend to make your payment in most cases it is the bank that you bank with as a company.
Click “Submit” the payment details will be submitted..
A new window opens with a “Payment Slip”‘ link.
Click the download link to download the payment slip or “ESlip” and print two copies.
Step 9: Pay the PAYE at your bank
Final step is to print the “Payment Slip” in 2 copies and take both to your local bank with a cheque for the amount indicated on the payment slip.
One of those copies will be kept by the bank as an indication of your payment while the other one will be stamped and given back to you as your receipt for your own books. This is a very important document as it’s actually shows that you have paid your liability. In case the bank has an issue with their systems and miss to register your payment, you can always fall back to this document as evidence for the payment.
ITax also sends you a confirmation email when you have made a payment and you can always check your “General Ledger” on ITax for verification of the payment entry.
Payment Deposit slip
When banking inform the teller to use the “payment Registration Number” printed on the top right corner of the payment slip.
The Payment Registration number must be reflected on the deposit slip issued by the bank.
Other details you must verify are reflected include :
Your PIN numberTax obligation say PAYE you are paying forPAYE monthbeneficially account which should be Kenya Revenue Authority Collection AccountBeneficially Account number should be as per the authorized KRA list attached
HOW TO FILE A NIL VAT PAYE RETURN ON ITAX
Visit https://itax.kra.go.ke/KRA-PortalEnter PIN/User ID (KRA PIN), click Continue and type in your password and answer the security question to access your iTax profile.To File a Nil Return, click on the Returns menu, select File Nil Return optionUnder Tax Obligation, select Value Added Tax – VAT or Income Tax PAYE from drop down menu.Enter the return period and click SubmitAn e-Return Acknowledgement receipt will be generated,Download the e-Return Acknowledge slip for your records
How to file PAYE on ITax
