Lilian Nyiva
The Kenya Revenue Authority (KRA) has introduced immediate changes aimed at making the annual tax return filing process easier for millions of Kenyans, particularly salaried employees. The reforms are intended to reduce the complexity of filing returns and improve the overall taxpayer experience.
Pre-filled Tax Returns
Under the new system, employed taxpayers whose only source of income is salary can now use a Simplified Return option on the iTax platform. The feature automatically pre-fills key information, including employment income, taxes already deducted, and the taxpayer's PIN, eliminating the need to complete the previously required Excel return form.
Taxpayers are only required to confirm whether they qualify for additional deductions or reliefs, such as mortgage interest or insurance relief, before submitting their returns.
Faster and More Efficient Filing
KRA says the changes are designed to reduce errors, shorten the time needed to file returns, and ease the burden on taxpayers. The simplified process mainly targets individuals who earn income from a single employer and have no other sources of taxable income, such as business or rental income.
Part of Wider Tax Reforms
The simplified filing process forms part of broader reforms introduced by KRA to improve tax compliance. The authority has also rolled out a phased filing approach that groups taxpayers according to the complexity of their income, allowing for more personalised guidance and reducing congestion on the iTax system during the filing season.
KRA has urged taxpayers to file their returns before the statutory deadline to avoid penalties while taking advantage of the new, streamlined filing system.
