Economy

KRA says iTax system technical hitch resolved

kra

KRA commissioner-general John Njiraini: Taxpayers complained they were unable to file tax returns. FILE PHOTO | NMG

The taxman says a technical hitch affecting its automated tax payment service dubbed iTax has been fixed.

Many taxpayers who own rental houses had earlier complained of inability to file monthly income tax returns in line with the law after the Kenya Revenue Authority’s (KRA) system failed.

“KRA would like to assure the public that the iTax system is up and running,” said KRA in a statement.

The taxman said taxpayers are required to log into their individual iTax portals and download the upgraded excel form to complete the filing, which runs up to the 20th of the following month.

“In the current month (November 2018) a total of 27,222 returns have been submitted and it is expected that 43,000 would have been filed by due date,” said KRA.

“Currently, iTax is receiving 16 returns per minute for this tax obligation.” Many landlords said they were unable to file the returns from last month.

Landlords with rental income of between Sh144,000 and Sh10 million per year are required file monthly returns via iTax.

By declaring the gross rent income, tax payable is computed automatically at a rate of 10 per cent. After filing the returns a user generates a payment slip and presents it at a KRA appointed bank.

The penalty for late filing is Sh20,000 or five percent of the due tax. iTax was launched in October 2013 as part of KRA’s reforms aimed at simplifying the filing of tax returns and gathering data to seal tax evasion loopholes.