📌 Introduction: Employed? You Still Need to File a Return
Let’s bust one of the biggest tax myths in Kenya — “I have a job, my employer deducts PAYE, so I don’t need to file a return.”
🚫 Wrong.
According to Kenyan tax law, every individual with a KRA PIN is required to file a return annually — including employed persons whose PAYE has already been deducted.
This 2025 guide explains why, how to do it, and what happens if you skip.
🧾 What Does the Law Say?
Under the Income Tax Act (Cap. 470) and the Tax Procedures Act, any resident individual with a registered KRA PIN must:
- File an Income Tax – Resident Individual return annually
- Declare all income (including employment, business, rent, or foreign income)
- Submit the return by 30th June of the following year
✅ This applies even if you have no extra income beyond your salary.
🔍 Why Filing Is Mandatory Even If You Have PAYE
| Reason | Explanation |
|---|---|
| ✅ Legal requirement | All taxpayers must file, per KRA rules |
| ✅ System validation | Ensures your taxes were remitted correctly |
| ✅ TCC compliance | A Tax Compliance Certificate (TCC) needs filed returns |
| ✅ Avoid penalties | Failure to file attracts Ksh 2,000 fine |
| ✅ Amending errors | Sometimes your employer misreports PAYE — only you can correct it |
📆 When Is the Filing Deadline?
| Year | Filing Window | Deadline |
|---|---|---|
| 2024 Income | Jan–June 2025 | 30th June 2025 |
NOTE: Filing early helps avoid last-minute system slowdowns.
📄 Documents You Need
- P9 Form – provided by your employer (shows total pay, benefits, tax deducted)
- KRA PIN and iTax login
- Any other income evidence (if applicable)
🧑💻 How to File an Employment Return on iTax – Step-by-Step
🪜 Step-by-Step Guide:
- Log in to iTax
- Go to Returns → File Return
- Choose: Income Tax – Resident Individual
- Select: “Yes” for employment income
- Fill in:
- Employer details (PIN, Name)
- Income from P9 form
- Tax deducted
- Insurance relief (if applicable)
- Pension and Housing deductions
- Submit and download e-Acknowledgment receipt
✅ Done!
⚖️ What If I Also Have a Side Hustle or Rental Income?
You still file the same Resident Individual Return, but under the “Other Sources of Income” section, you will:
- Add business profits
- Add rental income
- Attach supporting documents if audited
This means your final tax may change, and you may owe more beyond PAYE.
⚠️ What Happens If You Don’t File?
| Offence | Penalty |
|---|---|
| Late filing | Ksh 2,000 (individuals) |
| False return | Fine + jail term (up to 3 years) |
| Skipping completely | TCC blocked + audit flag |
| System auto-filing | Still considered non-compliance if you don’t confirm and submit |
📉 Common Mistakes to Avoid
- ❌ Ignoring return because PAYE is deducted
- ❌ Filing Nil return instead of Employment return
- ❌ Using wrong employer PIN
- ❌ Skipping health/pension relief
- ❌ Forgetting to declare other income (side hustle, rent)
💡 Pro Tip: What If You’ve Never Filed?
You can file previous years under the “Amended Return” section. Filing late is better than being flagged forever.
🤔 FAQs
Q1: I have one job and no other income. Must I file?
Yes — all employed persons must file annually.
Q2: KRA already pre-filled my return. Am I done?
No. You must log in and confirm (or correct) and submit.
Q3: What if I have multiple employers?
Declare all — you’ll need all P9 forms and may owe extra tax.
Q4: I left Kenya. Do I still file?
If your PIN is active, yes — or apply to deregister.
Q5: Can I file via mobile?
Yes! Use KRA’s M-Service App or iTax Mobile View.
📣 Conclusion: Don’t Assume – Always File
Whether you’re a junior officer, mid-level manager, or public servant, filing your tax return is your legal responsibility.
Avoid surprises, protect your compliance, and gain peace of mind — it only takes 15 minutes.
👉 Need help filing your employment return?
Visit Ushuru.com or book a FREE checklist download to stay ahead of the deadline.