How to File a Return for a Salaried Employee in Kenya

Navigating the tax landscape can seem daunting, particularly if you’re a salaried employee who’s filing tax returns for the first time. However, the process isn’t as intimidating as it seems. In this article, we’ll walk you through the process of filing a return for a salaried employee in Kenya, and we’ll also discuss how to account for withholding tax.

As a salaried employee, your employer should provide you with a P9 form at the end of the financial year. This form details your income and the tax deducted throughout the year by your employer. The P9 form is a critical document needed when filing your tax returns.

After filling out the form, validate it and generate a zip file. Then, upload the zip file back to the iTax system, agree to the terms and conditions, and click ‘Submit.’ An acknowledgment receipt will be generated, which you should download and keep for your records.

Even after you’ve filed your tax return, it’s crucial to keep your records, such as your P9 form and a copy of your filed return, in a safe place. If the KRA has any queries or if there are discrepancies in future returns, these documents will be invaluable.

Filing your tax return is a vital part of your responsibilities as a salaried employee, and while it might seem daunting, the process is more straightforward than you might think. With the right preparation, a clear understanding of the process, and a careful approach, you can file your return without any hassle. Remember, staying tax compliant not only helps you avoid penalties but also contributes to the development of the nation. Let’s pay our taxes and play our part in building Kenya.

How do I download P9 forms for employees?

The P9 form is typically provided by the employer to the employee at the end of the financial year for tax return purposes. As an employer, you can download P9 forms for your employees from the KRA iTax portal. Here’s a step-by-step guide:

— Log into your iTax account using your PIN and password.

— Navigate to the “Employers” menu and select “P9 Forms.”

— In the new page, select the year for which you want to download the P9 form.

— After selecting the year, click “Generate” and the system will generate the P9 forms for all your employees.

— Once generated, you can download the P9 forms and distribute them to your employees.

How is tax payable on taxable salary calculated in Kenya?

Kenya operates a progressive tax system for resident individual taxpayers. The tax bands are as follows for PAYE:

— The first Kshs. 24,000–10%

— The next Kshs. 16,666–15%

— The next Kshs. 16,667–20%

— The next Kshs. 16,667–25%

— Over Kshs. 74,000–30%

To calculate tax payable on taxable salary:

— First, determine your gross income. This is your total income before any deductions.

— Subtract the personal relief. The personal relief is Kshs. 2,400 per month or Kshs. 28,800 per year.

— The result is your taxable salary.

— Apply the above tax bands to your taxable salary to calculate the tax payable.

Please note that this information is accurate as 2023, and you should check the most recent tax bands and rates from the KRA or a reliable tax advisor.

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