iTax is a web-based system developed to simplify revenue collection in Kenya by allowing taxpayers to simply update their tax registration details, file tax returns using Microsoft Excel or Open Office, register all tax payments and make status enquiries with real-time monitoring of their ledger/account.
According to the iTax team speaking yesterday at the Bake Experience held at Nailab,”iTax is a web-enabled tax collection system by KRA to end the inefficient manual processes. It’s an answer to simplify the tax processes, shorten time taken to file returns and increase revenue collection. The system is automatic, updates the empoyee and employer ledgers in realtime after filing and sends them notifications whether the returns have been filed successully or rejected.”
The iTax system is used to collect taxes on three types of income-employment income, business income and rental income. iTax allows users to apply for their KRA TAX PIN, check certificate, generate e-slip, file their returns electronically, view your ledger, check status and as well apply for a tax compliance certificate or file VAT, Income Tax, PAYE and Standards levy for KBS.
The system has been launched countrywide to help simplify taxpayers registration and as well enable them to file returns from wherever they are. iTax aims to end the reliance on the old KRA web-based system which was tedious to use and still had manual processes for taxpayers to follow up unlike this automatic iTax system.
Taxpayers can use iTax to file returns for Pay As You Earn (PAYE), Value Added Tax (VAT), Individual annual Income Tax Return (IT1), and agency revenue that includes Sugar Development Levy and Kenya Bureau of Standards.
“To register for iTax, one needs to provide their e-mail address and a unique password. Those that already have a KRA PIN only need to provide their PIN to log in,” said the iTax team yesterday.
The team added that the system has a security stamp everytime a user logs in and as well has a mental sum to determine if the datais being entered into the system by a machine or a human being. The team also promised that the system would be updated to allow 2-step verification to protect unathorised access to protect user data.
Agencies that have access to KRA data include banks, Safaricom’s M-Pesa, Kenya Bureau of Standards, the Foreign Affairs dept, taxpayers, KRA staff, the company registrar, treasury, ICPAK, and the ministry of lands. KRA has appointed an acquisition and recruitment team all over the country and at Huduma centres to sign up as many taxpayers as possible as well as help those already registered to file their returns before the June 30th deadline.
To those looking for refunds, KRA only has deposit accounts which means it can never withdraw the cash for its own use and has to requisition for money from the treasury for its own operations as well as for tapayers refunds. This year, KRA was given Ksh 20B for taxpayer refunds which of course won’t be able to refund everyone.
The authority also says taxpayers must never underpay just because KRA has accumulated their refunds. If you’ve been double-taxed or paid VAT when your turnover is less than Ksh 5m you can ask for a waiver from the KRA. If KRA doesn’t approve the waiver, you can still go to the hight court if you think the system is unfair to you.
For those who have no Internet, the iTax System can also be accessible at various cyber cafes and within Huduma Centres countrywide with support officers on standby to help taxpayers. Go to http://itax.go.ke , enter your PIN or User ID or sign up for a PIN if you’re registering and start filing before the June 30th deadline as the new iTax system automatically penalises taxpayers that haven’t paid when the deadline hits.