How to File KRA Monthly Rental Income Returns Online and Make Payments. The Kenya Revenue Authority (KRA) requires landlords to file Monthly Rental Income (MRI) returns and pay taxes on the rental income they receive. As of January 2024, the tax rate for rental income has been reduced to 7.5%, payable on or before the 20th of every month. Here’s a step-by-step guide on how to file KRA Monthly Rental Income returns online and make payments.
Requirements
- iTax Portal Access: https://itax.kra.go.ke
- KRA PIN Number
- KRA iTax Portal Password
- Figure of Rental Income Collected
- Active Internet Connection
How to File KRA Monthly Rental Income Returns Online
- Open Your Browser
- Use a PC for better responsiveness.
- In the URL bar, type https://itax.kra.go.ke and press Enter.
- Login to iTax
- Enter your KRA PIN number and click “Continue”.
- Enter your iTax password and complete the CAPTCHA (security stamp).
- Click “Login”.
- Access the File Returns Menu
- On the iTax dashboard, hover over the “Returns” menu.
- Click on “File Returns”.
- Under “Tax Obligation”, select “Income Tax – Rent Income” and click “Next”.
- Enter Return Details
- Select the month for which you are declaring your rental income. The system should automatically display the current or last filed month.
- Enter the number of properties you own and the total rental income collected.
- The system will calculate the tax due based on the income entered.
- Click on “Submit”.
- Download Acknowledgement Receipt
- After submitting the return, download and save the acknowledgment receipt for your records.
How to Make Payment for KRA Monthly Rental Income
- Generate Payment Slip
- On the iTax dashboard, go to the “Payments” menu and select “Payment Registration”.
- Choose “Income Tax Resident Individual” under “Tax Head”.
- Select “Income Tax Rent Income” under “Tax Obligation” and “Self Assessment” under “Tax Subhead”.
- Enter the amount of tax calculated during filing.
- Select “Other Modes of Payment” and click “Submit”.
- Print the generated payment slip with the payment registration number.
- Pay Using M-PESA
- Go to the M-PESA menu on your phone.
- Select “Lipa na M-PESA”.
- Choose “Paybill”.
- Enter KRA Paybill number: 222222.
- Enter the payment registration number from the payment slip as the account number.
- Enter the amount to pay.
- Key in your M-PESA PIN and confirm the payment.
- Wait for the confirmation messages from both M-PESA and KRA.
Additional Tips
- Timely Filing: Ensure you file your returns and make payments on or before the 20th of each month to avoid penalties.
- Keep Records: Save copies of all receipts and acknowledgment slips for future reference.
- Accurate Information: Double-check the figures you enter to avoid discrepancies and ensure accurate tax computation.
By following these steps, you can efficiently file your KRA Monthly Rental Income returns online and make payments using M-PESA, ensuring compliance with Kenyan tax regulations.
