Whenever taxpayers in Kenya make a mistake and overpay their taxes, the Kenya Revenue Authority (KRA) has made it easier than ever for them to get their money back through the iTax system.
According to reports, a new selection for processing refunds for incorrectly paid taxes has been added to the refunds menu.
The move was enacted through National Treasury’s Finance Act 2022. A taxpayer can apply for a refund through the system, and their request will be reviewed and processed by the iTax refunds team.
The process to file returns on the KRA iTax portal.
“The first phase of this delivery targets whose respective credit has not been reflected in the iTax ledger but the taxpayer has evidence of payments made.
“The system will allow taxpayers to submit an application for a refund of the tax paid in error for major tax heads (VAT, income tax, turnover tax, withholding tax etc) which will then be subjected to an approval process within the iTax refunds module, ” KRA stated.
The taxpayer can request a refund of any taxes that were paid in excess of what was owed to the Tax Authority. But this only applies to tax payments that are scheduled to be made in the future.
“When a taxpayer files their income tax return and they have excess instalment tax payments, the system will generate an instalment adjustment voucher (IAV).
Part of the explanation reads, “The system will afterwards allow taxpayers to collect the IAV when making their next instalment tax payment and so be able to credit it against instalment taxes payable for the impacted period.”
How to Apply
One can submit a tax refund application via itax.kra.go.ke.
Put in your login credentials (username, password, and security question). Click login
To request a refund for taxes that were paid in error, go to the tab labeled “Refund.”
Basic information including applicant type, taxpayer identification number, bank name, branch name, account number and name, and city of residence must be entered.
Select the tax liability and explanation, upload the document giving the necessary documentation, and specify the time period for which taxes were paid in error on the claim details page.
Enter the refund claim amount.