KRA: How to Register for a Personal Income Tax. Individual income tax is also referred to as personal income tax. This type of income tax is levied on an individual’s wages, salaries, and other types of income. This tax is usually a tax the state imposes. Because of exemptions, deductions, and credits, most individuals do not pay taxes on all of their income.
The IRS offers a series of income tax deductions and tax credits that taxpayers can make use of to reduce their taxable income. While a deduction can lower your taxable income and the tax rate that is used to calculate your tax, a tax credit reduces your income tax by giving you a larger refund of your withholding
Procedure on how to Register for a Personal Income Tax in Kenya
- Employers simply visit one of the Revenue offices fill PAYE return forms which are used to remit the PAYE tax for employees every month.
- Monthly payments of Pay As You Earn (PAYE) tax liabilities are to be made on or before the 10th day of the month following the applicable month (e.g. January tax to be remitted by 10th of February).
- PAYE Taxes are calculated as follows:
After the relief allowance and exemptions (see blow) have been granted, the balance of a taxpayer’s income is taxed on a graduated scale as shown below:
- First Ksh30,000 of income @7%
- Next Ksh30,000 of income @ 11%
- Next Ksh50,000 of income @ 15%
- Next Ksh50,000 of income @19%
- Next Ksh.1,60,000 of income @ 21%
- Above Ksh320,000 of income @ 24%.
- Direct Assessment Tax & Self Assessed Tax
Direct Assessment is used to assess tax for self employed individuals. With the self assessed tax, a new tax payer can assess him/herself, pay the calculated tax at designated banks and get an e-TCC (Tax Clearance Certificate) without visiting any tax office.
Required Documents to Register for a Personal Income Tax in Kenya
- A certified legible copy of the taxpayers Identity document or Passport document.
- Proof of identity document/passport
- Affidavit to justify the absence of the identity/passport together with the temporary identity document/passport.
- Proof bank statement with the bank stamp that confirms the account holder’s name, account number, account type, and branch code;
- Proof of residential address, e.g municipal account/utility bill of an individual not more than three months old reflecting the name and residential address;
Office Locations & Contacts
- The Kenya Revenue Authority (KRA)
Times Tower, Haile Selassie Avenue
P.O Box 30742 00100, GPO,Nairobi
- Ministry of Finance
Treasury Building, Harambee Avenue,
P.O. Box 30007, Nairobi
Tel: OR 0733660606
Website: http://www.treasury.go.ke .
Eligibility to Register for a Personal Income Tax in Kenya
All employers of private and government institution. .
Fees to Register for a Personal Income Tax in Kenya
free of charge .
Validity to Register for a Personal Income Tax in Kenya
One day but There is no set time for this service.
Instructions to Register for a Personal Income Tax in Kenya
The employer must register for PAYE, as well as be familiar with the rules relating to the filing of PAYE returns and how PAYE is calculated.The registration to get a PAYE file number generally involves a few minutes.
All employers in Kenya by law are responsible for deducting Pay As You Earn (PAYE) taxes from their employees’ pay. Taxes deducted are required to be remitted to the appropriate tax office by the 10th day of the month following the deduction.
Required Information to Register for a Personal Income Tax in Kenya
- Name of Taxpayer
- Taxpayer Identification Number
- Business Name or Trade Name of Taxpayer
- Bank Details
- Name of Bank
- Bank branch
- Account Number
- Type of Employment
- Total Income Chargeable Income Total Tax Payable
- Details of Salary paid and PAYE deducted from Employees .
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