NAIROBI, Kenya — The Kenya Revenue Authority (KRA) has announced that it has exempted salaried workers from the manual filing of annual tax returns, a change made possible by the integration of its internal systems.
This new measure will apply to employees whose only source of income is from employment and those with a tax-free income—currently KSh 24,000 or less per month—who file nil returns beginning next January.
The KRA stated that salaried workers will now only be required to enter their national identification number into the system.
The system will then automatically pre-populate the necessary annual income data, such as their gross pay and taxes deducted.
This is a significant departure from the previous process, which required workers to manually input the same information from P9 forms provided by their employers.
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These forms summarize their gross pay, allowances, benefits, and Pay As You Earn (PAYE) taxes.
The integration of KRA’s systems will enable the revenue authority to automatically populate the income and taxation data that salaried workers file into the electronic income tax system, iTax, each year.
The KRA noted that its datasets were already integrated to allow for this auto-population starting this year, but the process was delayed by the recent introduction of the housing development levy and the Social Health Insurance Fund on pay slips.
