What is payment registration number?
Payment Registration Number or PRN replaces the manual tax payment stationeries such as P11 and VAT3. PRN is generated electronically and is bar coded with a unique serial number for every transaction. The PRN must be quoted when making payments to allow taxpayer ledger to be updated.
How is tax payable on taxable salary calculated?
Pay-As-You-Earn(PAYE) is the tax charged on income earned by employees in Kenya….The formula for calculating this income tax in Kenya uses the following simple steps:
- Gross Income = Basic salary + allowances + commissions.
- Taxable Income = Gross Income – all deductions/exemptions allowed by law e.g. NSSF, private pension.
How do you get Eslip?
How to generate e-slip on iTax without hassle
- Access the official portal.
- KRA pin and password needed.
- Get to the iTax web portal account.
- Go to payment and registration tabs.
- You will get to the e-Payment dashboard.
- Input the necessary payment information details.
- Add mode of payment and payment details.
- Download the slip.
What is an e-slip?
What is an e-slip? An e-slip is an electronic ticket that contains the taxpayer’s details i.e. name, PIN number, amount of tax due.
How do I make KRA payments?
After filing the return online via iTax, generate a payment slip and present it at any of the appointed KRA banks to pay the due tax. You can also pay via Mpesa. Use the KRA Pay bill number 572572. The Account Number is the Payment Registration number quoted at the top right corner of the generated payment slip.
How do I set up a payment plan for KRA?
Go to the iTax portal https://itax.kra.go.ke and log into your iTax profile using your credentials: KRA PIN and Password. Go to the Payments Menu, Select Payment Registration. Select taxpayer or agent under applicant type as appropriate.
How much does KRA deduct from salary?
As an employer you are required to deduct PAYE from your employees’ salaries and wages at the prevailing rates and remit the same to KRA on or before the 9th of the following month….
| Rates Effective – 01.01.2021 | |
|---|---|
| Gross Income from Employment | 115,000 |
| Taxable Pay | 95,000 |
| First | 24,000*10% =2,400 |
| Next | 8,333*25% =2,083.25 |
How do I get KRA PRN?
How to Generate KRA Payment Slip via iTax
- Step 1: Access https://itax.kra.go.ke/KRA-Portal/
- Step 2: Enter your KRA PIN Number and KRA Password.
- Step 3: iTax Web Portal Account.
- Step 4: Click on Payments Tab then Payment Registration.
- Step 5: ePayment Dashboard.
- Step 6: Fill in the Payment Information Details.
What happens if you dont pay KRA penalty?
If you don’t file PAYE returns within the specified time and day, you will pay a penalty of 25% of the tax owed or Ksh. 10,000. Late payments also incur a 5% fine on the amount due and an additional interest fee of 1% per month on the unpaid amount.
How do I pay my KRA nil return penalty?
On the Mpesa menu, select Paybill. Enter KRA Account Number as 572572 as the business number. For the account number, enter the registration number. Enter the amount due.
How is Instalment tax calculated?
The installments are spread evenly at 25% of the tax due and payable on the 20th day of the 4th, 6th, 9th and 12th months of the year of income for all taxpayers expect those in the Agricultural Sector. Taxpayers in the Agricultural Sector pay in installments of 75% in the 9th month and 25% in the 12th month.
What are tax installment payments?
Tax instalments are payments made throughout the year to cover taxes that would otherwise be paid all at once in your annual tax return of the following year.
How do I file monthly PAYE return?
Here’s how to file KRA PAYE returns online:
- Log on to from your browser.
- Enter your KRA PIN, click Continue.
- Under the returns section, click on file returns then select income Tax followed by the PAYE option.
- Click on the returns tabs and then the last item ITR for employment income.
How do I know if I owe KRA?
Checking For Penalties
- Log in to https://itax.kra.go.ke/KRA-Portal/
- Enter your KRA PIN, then click continue.
- On the dashboard, select My Ledger.
- Fill in all the tabs.
- Under transaction type select penalty.
- For Account type click on Taxpayer Main Account.
Does KRA monitor bank accounts?
Summary. The Kenya Revenue Authority (KRA) is spying on bank accounts in an effort to crack down on tax cheats, a move that raises questions about the confidentiality of banking transactions.
What is installment tax KRA?
Installment tax is estimated income tax paid to KRA periodically, in anticipation of the tax payable for a year of income. Installment tax is a form of advance tax administered under the Income Tax Act Cap 470, laws of Kenya. Installment Tax is paid in advance at four equal installments.
How much is KRA penalties?
Penalty – 10% of the amount of the tax involved, up to a maximum of Kshs. 1 million. Offence – failure to remit Excise Duty or VAT. Penalty – whichever is greater of, 5% of the amount of the tax due or Ksh.
How to generate payment slip by Kra?
The first step in generating payment slip by KRA is by visiting the iTax Portal using the above link provided and as shown below. The next will be for you to enter your KRA PIN Number and KRA Password so as to enable you to log into your iTax account. This is as shown below.
How do I pay Kra via Mpesa?
You can make payments via Mpesa. Use the KRA Pay bill number 572572. The Account Number is the Payment Registration number quoted at the top right corner of the generated payment slip.
What is the validity of Kra advance tax payment slip?
The Advance Tax payment slip is valid for 30 days after which it will expire if you will not have made payment to the bank. Below is a sample of the generated KRA Advance Tax Payment Slip. You need to take into account that the Advance Tax Payment slip comprises of two pages.
What is a payment slip and how do I use it?
The payment slip contains payment registration number / account number. The payment slip contains a search code. The payment slip expires after 30 days from the date it is generated. You can make payment using either Bank or M-Pesa. Sometimes M-Pesa might experience delays, so paying via Bank is very much advisable.