Every year, on 30 June, the deadline arrives for most individuals to file their income tax return for the previous calendar year. The date is the same for employees, landlords on the annual route, sole traders and professionals, and it is the date on which late penalties start.

Who has to file

You need to file if you hold a KRA PIN and have an income tax obligation on your account. That includes:

  • employees, even if PAYE was deducted and no more tax is due;
  • landlords who pay tax on the annual route, or who have other income;
  • sole traders, freelancers and consultants;
  • anyone with income from investments or other sources that is not fully taxed at source.

If you have no income, you may still be required to file a nil return unless your obligation has been removed. Our nil returns guide explains this.

What happens if you miss it

A late return attracts a penalty, even if you owe no tax. For individuals, the penalty is the higher of a percentage of the tax due and a fixed minimum. If tax is also unpaid, interest runs every month, and a late payment penalty may apply. On our settings, a return with KES 100,000 of tax filed 30 days late and paid 45 days late carries penalties and interest of –. You can test your own numbers with the penalty calculator. Penalties also appear on your iTax ledger and can block a tax compliance certificate.

A checklist for filing early

  1. Check your iTax login now. Make sure you can log in and that your details are correct, because reset requests take time near the deadline.
  2. Collect your documents: P9 forms from every employer, rent records, business income and expense records, bank and mobile money statements, and certificates for insurance, mortgage interest, pension and withholding tax.
  3. Estimate the result. Use the P9 calculator for employment income and the rental income calculator for landlords.
  4. File the return on iTax, using your own account, and check the pre-filled information against your documents.
  5. Pay any tax due using the payment registration number, before the deadline, so no interest accrues.
  6. Save the acknowledgement and the payment receipt.

If you cannot pay

File on time anyway. The filing penalty is separate from the payment penalty, and filing on time avoids the first. Then contact KRA to agree a payment plan, and keep to it.

If you have already missed it

File now. Every extra month adds interest, and the sooner the return is in, the less the penalty grows. Ask KRA whether an amnesty is open, and consider asking for the penalty to be waived with a short, honest explanation.

Make next year easier

Keep a folder for the year's documents as they arrive, set a reminder for May, and review your reliefs in January. A short routine through the year beats a rush in the last week of June, when iTax is busy and mistakes are more likely.

This guide is general information and not tax advice.