Filing KRA Returns for Companies in Kenya: A Step-by-Step Guide

This archive report was first published on 23 August 2019.

Understanding KRA Returns for Companies ¶

As of August 23, 2019, the Kenya Revenue Authority (KRA) has made it mandatory for all companies registered in Kenya to file annual returns. This statutory document provides a comprehensive overview of the company's current status, including its structure, shareholding, and other essential details.

Annual returns are a crucial aspect of a company's compliance with the Companies Act. They serve as a report card, showcasing the company's progress, financial performance, and other key information. In this article, we will guide you through the process of filing KRA returns for a company in Kenya.

Registering a Company on iTax ¶

Before filing KRA returns, it is essential to register your company on the iTax system. This innovative platform has made it easier for organizations to file returns, replacing the traditional methods. To register your company, follow these steps:

1. Confirm your company's tax obligations on the KRA website.
2. Log in to the iTax system using your registered credentials.
3. Follow the guidelines for unregistered clients to complete the registration process.
4. Once registered, proceed to the eRegistration page to provide your company's details, including the accounting period, type, subtype, name, and business registration and commencement dates.
5. Submit the registration and confirm the security stamp.
6. Upon successful registration, you will receive a new PIN certificate, which can be downloaded.

Filing Company Annual Returns Online ¶

After registering your company on iTax, you can proceed to file annual returns online. Here's a step-by-step guide:

1. Open an eCitizen account by visiting the official website (www.eCitizen.co.ke) and selecting 'create an account.'
2. Link your company to the eCitizen platform by providing the required details, including the business registration service.
3. Fill in the information of all directors and the secretary, including their postal and physical addresses.
4. Submit the company's information and wait for verification and approval by the registry.
5. Once approved, click on the 'maintain company' tab and select 'annual returns' from the list on the left.
6. Choose the year of the last performance and save the details. Download the Annual Return Form, fill it, and have it stamped by the Company Secretary.
7. Upload the duly filled and stamped Annual Return Form for the year you intend to file returns for.
8. Make the payment using the preferred method (Mpesa is recommended). The amount payable depends on the year you last filed returns and any penalties.
9. Once paid, click on the 'complete' tab, and the system will issue a receipt, which can be downloaded. A copy of the filed returns is also available for download.

Contents of an Annual Return ¶

Annual returns for a corporation include the following particulars:

• Amount of share assets and the number of shares into which it is divided.
• Amount of share taken from the start of the business up to the date of filing.
• Full amount of sums paid by commission for any shares or debentures.
• Physical address of the place where the list of those who have of the business is kept (if not in the registered office).
• Physical and postal addresses of the company.
• Address of the site where the register of members is kept (if different from the registered office).
• Amount called upon every share.
• Summary differentiating shares issued for cash and those issued as wholly or partly paid up in any other means other than money.
• Discount allowed on the issue of any shares issued at a discount.
• Total number of shares lost.
• Number of shares held by shareholders at the time of the return. Share warrants issued and submitted correspondingly since the time of the last return.
• Details of the total amount of the indebtedness of the company as at the date of this return.
• A list containing:

Requirements to File Tax Returns for a Limited Company ¶

To file returns for a limited company, you will need the following:

1. An official certificate signed by the secretary and a director of the business that the firm has not, since the date of the last return, issued any shares or debentures.
2. Details of the company's share capital, including the amount of share assets and the number of shares into which it is divided.
3. Information about the company's directors, including their names, addresses, and dates of appointment.
4. Details of the company's secretary, including their name, address, and date of appointment.
5. Information about the company's members, including their names, addresses, and dates of membership.
6. Details of the company's share warrants, including the number of warrants issued and the date of issue.
7. Information about the company's indebtedness, including the total amount of the company's debts and the date of the last return.