Employers in Kenya registered with the National Industrial Training Authority (NITA) are required to pay an annual levy of Ksh 600 per employee, including casual laborers. This levy is crucial for funding the country’s industrial training initiatives and must be paid on time to avoid penalties. The Kenya Revenue Authority (KRA) facilitates the process through its iTax system, making it seamless for employers to file returns and make payments.
If you’re an employer looking to file NITA returns on iTax, follow this comprehensive guide.
Steps to File NITA Returns on iTax in Kenya
- Log Into iTax
- Visit the iTax portal.
- Enter your KRA PIN and password to log into your account.
- Navigate to Returns Menu
- Once logged in, go to the Returns menu at the top of the page and select File Return.
- For the tax obligation, choose Income Tax PAYE.
- Download the PAYE Return
- Download the PAYE return form using the provided link. This is an Excel-based form that you will need to fill out.
- Fill in PAYE Return Details
- Open the PAYE return file and input the required details, including employee information.
- Declare NITA Levy
- In the PAYE return file, locate the sheet labeled M1 (NITA Levy Details).
- Fill in the relevant details for the NITA levy for each employee in your organization during the specified financial year.
- The NITA Levy details entered in sheet M1 will automatically populate in the tax due sheet (on rows 17 and 19).
- Validate and Submit the Return
- Validate the return to ensure all details are correct.
- Once validated, compress the file into a ZIP format.
- Upload the validated return on the iTax portal and submit it.
- After submitting, download the return receipt for your records. A copy will also be sent to your iTax-registered email address.
- Register for Payment
- Navigate to the Payments menu and select Payment Registration.
- Choose the tax head as Agency Revenue, and the tax subhead as NITA Levy. The tax period should be the same as the one used during the return filing.
- The NITA Levy amount will automatically populate based on the filed return.
- Generate Payment Slip
- Click on Add, select your preferred mode of payment, and submit the details.
- Download the payment slip and proceed to make the payment either at your bank or through alternative methods like mobile payments, debit cards, or credit cards.
- A copy of the payment slip will also be sent to your iTax-registered email.
Penalties for Non-Compliance
Failure to pay the NITA Levy on time attracts a 5% penalty on the amount due. Employers who fail to comply with NITA registration requirements can face fines of up to Ksh 100,000 and additional penalties of up to Ksh 50,000 for each year of non-compliance.
Contact KRA for Assistance
If you encounter any challenges during the filing process, reach out to KRA for assistance:
- Phone: +254 20 4 999 999 or +254 711 099 999
- Email: callcentre@kra.go.ke
By following these steps, you can easily file your NITA returns on iTax and avoid unnecessary penalties.
