Global Payment and Compliance
Filing returns using P9 forms is a must for every employee in Kenya. Many people find filing
Filing returns using P9 forms is a must for every employee in Kenya. Many people find filing returns a long and confusing process especially if they do not know how to do it. Tax returns are done by June 30th of every year. Late filing of tax returns attracts a penalty of 5% of the tax due or Ksh. 20,000. There are two types of returns that you can make. If you are employed, you need a P9 form. However, if you are unemployed, you file Nil Returns to avoid penalties.
A P9 form is a tax-deduction form that employers issue to their employees. It contains employees’ basic salary, benefits, allowances, pension contributions, gross pay, tax charges, and personal relief for the whole year.
Below are steps to follow when filing your returns using a P9 form:
It is important to note that a negative figure on your KRA Returns means that you are due for a refund from KRA. In addition, a positive figure on your returns means you owe KRA and you are supposed to pay.
As long as you are a Kenyan citizen above the age of 18years, you are supposed to file your annual returns. In the case where you have no source of income, you will be required to file them as nil instead of using a p9 form, which is simple. Below are the steps on how to file nil Returns:
To sum up, for employees, it is important to learn how to file returns using a P9 form to avoid penalties. It is easy and quick. Moreover, for those who are unemployed, it is also crucial to make annual nil returns to avoid hefty penalties. Are you looking to file your returns easily?Read NOW! on Easy steps on how to get a P9 form in Kenya, even more, Do statutory deductions in Kenya offer any benefits?
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