Both employers and employees are set to benefit from the latest developments at KRA. This is a move to boost tax compliance to an even higher level than it currently is and better the trend of increasing compliance in the recent years. For instance, in the period ending June 30th 2018, they saw a growth in PAYE by over 14% from KES. 158.17 billion to KES 180.37 billion.
This comes as the Kenyan taxman announced re-configuration of iTax, their online tax filing system so as to ease the PAYE declarations by employers. John Njiraini, the Commissioner-General of the government agency pronounced this move as a first phase of the ongoing series of the tax system enhancement which will allow upload of PAYE data submitted by employers from third party systems/platforms.
This, therefore, means employees will only go through a two-step procedure to file their returns since the data will be auto-populated by the iTax system as long as the employer declared the correct information. In fact, the employees would only need to fill in pension and annual relief data, then review and confirm various data sets as the system will automatically capture the data previously keyed into the system.
For employees with a sole source of income, filing tax has never been easier, smoother or faster as this enhancement will see auto-population of employment income. Read why you need to file your tax returns today here and make use of this system improvement.
