What is a KRA P9 form, how to File KRA Returns Using P9 Form, how to download it from GHRIS and TSC Human Resource online Portals, its uses, and where it comes from?
What is KRA P9 Form?
The KRA P9 Form is the form from KRA Income Tax Department that is given to employees by their employer. It shows the employee what they had earned in the previous year and how tax has been deducted from those earnings.
This P9 is a form contains the total income you have earned in a year and depending on your employer, may include the following,
- Basic salary
- Allowances and benefits
- Gross salary
- Pension contribution
- PAYE charged
- Personal relief entitlement.
This is the form that contains the information that you will be used to fill the KRA iTax Returns form online in the KRA Portal.
How to File KRA Returns using P9 Form
This guide here will give you the step by step procedure of how to file back your KRA itax returns online especially for the individuals with employment income.
All Individuals with employment income must pay income tax and therefore need to be supplied with a KRA P9 Form by their employer.
So, depending on your company structure, visit your Human Resource Officer (HR) for your KRA P9 Form copy.
How does a KRA P9 Form Look Like?
A sample P9 form from KRA Income Tax Department has the following entries;
Header Section: Employers Name, Employees Names, Employer’s Pin, Employee’s Pin, Employee’s Payroll Number
Body Section: Pay of the Month, Non Cash Benefits, Value of Housing Quarters, Defined Contribution/Benefit Fund, Owner Occupied Interest (Home Ownership Savings Plan – H.O.S.P), Defined Contributions and Owner Occupied Interest, Taxable Pay, Tax on Taxable Pay, Monthly relief, Insurance relief and PAYE Tax, Total Changeable Pay and Total PAYE Tax.
KRA P9 Form indicates all taxes on basic salary, allowances, benefits, bonuses, grants, etc.
Important KRA P9 Form Details You Should Know
👉Gross Pay: This is the sum of your basic pay together with any other taxable allowances and benefits that you have received as a result of your employment.
👉When you are filling the KRA Online form, you should treat the Pension contribution, Mortgage interest and savings in a home ownership savings plan (HOSP) as deductible contributions.
This means they are deducted from your gross pay before getting the taxable income. On the online return form, these amounts should be well captured, failure to which they will end up being included in the tax payable after you finish the filing process.
👉There are various conditions that these deductible contributions are subject to. That is, a maximum of Kshs. 25,000 per month (Kshs. 300,000 per annum) is deductible if the mortgage interest or owner occupied interest is on an amount that was borrowed for either improvement of premises you occupy for residential purposes or purchase of premises.
👉A maximum of Kshs. 4,000 per month (Kshs. 48,000 per year) is deductible if you have a Home Ownership Saving Plan from an approved institution.
👉Contributions towards a defined contribution fund such as a registered pension fund, individual retirement fund or the National Social Security Fund (NSSF) is allowable up to a maximum of Kshs. 20,000 per month (Kshs. 240,000 per annum). The deductible amount is however limited to the lesser of:
- 30% of your pensionable (basic) income
- Actual contribution
- Kshs 240,000 (i.e. equivalent to Kshs. 20,000 per month)
👉Your Individual’s chargeable pay or taxable income is taxed on a graduated scale according to that particular year’s prevailing tax rates.
👉Every tax-paying resident individual is entitled to personal relief. This is a tax incentive and it reduces the amount of tax payable.
The prevailing rate of personal relief in Kenya is Kshs. 16,896 per annum (i.e. Kshs 1, 408 per month) as from January 1 2018.
👉Anyone with an education, health, or life insurance policy, is entitled to a 15% insurance relief of the amount of premiums paid for self, spouse or child. This, however, should not exceed Kshs. 60,000 per annum.
How Do I Get My TSC or GHRIS P9 Form Online?
Important KRA Links