Compliance and Statutory

How to File Returns Using P9 Form

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Filing returns using P9 forms is a must for every employee in Kenya. Many people find filing returns a long and confusing process especially if they do not know how to do it. Tax returns are done by June 30th of every year. Late filing of tax returns attracts a penalty of 5% of the tax due or Ksh. 20,000. There are two types of returns that you can make. If you are employed, you need a P9 form. However, if you are unemployed, you file Nil Returns to avoid penalties.

What is a P9 Form?

A P9 form is a tax-deduction form that employers issue to their employees. It contains employees’ basic salary, benefits, allowances, pension contributions, gross pay, tax charges, and personal relief for the whole year. 

How to file returns using a P9 form

Below are steps to follow when filing your returns using a P9 form:

  1. Visit KRA itax portal( itax.kra.go.ke )
  2. Log in to your iTax account using your KRA pin and password
  3. Click on the Returns tab and click File Return
  4. Select your tax obligations(Income Tax-Resident Individual) then click Next
  5. Download the Income Tax Resident Individual Form( You will be directed on how to download and Unzip it)
  6. Once the excel sheet is opened, fill in the tabs, that is, basic information, employment income, details of the PAYE deducted, and tax computation(Personal Relief)
  7. Click on the validate button to validate the data on the Income Tax Resident Individual Excel Sheet.
  8. Upload the Excel Sheet and click on the submit button
  9. Lastly, download the KRA eReturn Acknowledgment Receipt

It is important to note that a negative figure on your KRA Returns means that you are due for a refund from KRA. In addition, a positive figure on your returns means you owe KRA and you are supposed to pay. 

How to file Nil Returns 

As long as you are a Kenyan citizen above the age of 18years, you are supposed to file your annual returns. In the case where you have no source of income, you will be required to file them as nil instead of using a p9 form, which is simple. Below are the steps on how to file nil Returns:

  1. Go to KRA iTax Portal
  2. Enter your KRA Pin and Password
  3. Go to the Returns menu and select File Nil Returns
  4. Select your type of taxation and tax obligation and then enter your KRA Pin
  5. Enter your details and the return period
  6. Complete them and then submit
  7. Download the acknowledgment receipt

Final Thoughts on How to file returns using P9 Form

To sum up, for employees, it is important to learn how to file returns using a P9 form to avoid penalties. It is easy and quick. Moreover, for those who are unemployed, it is also crucial to make annual nil returns to avoid hefty penalties. 

Are you looking to file your returns easily?

Read NOW! on Easy steps on how to get a P9 form in Kenya , even more, Do statutory deductions in Kenya offer any benefits ?

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