How to File PAYE on iTax
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How to File PAYE on iTax

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Jun 19th, 2025

How to File PAYE on iTax

Introduction
Pay As You Earn (PAYE) is a mandatory tax obligation in Kenya under the Income Tax Act. Employers are required to deduct tax from employees’ salaries and remit it to the Kenya Revenue Authority (KRA) by the 9th day of the following month. Filing this correctly via iTax is essential to avoid penalties and remain compliant.

1. Prepare Before Filing

Before accessing the iTax portal, ensure you have the following:

  • KRA PIN and iTax password for your business or organization

  • Latest P10 Excel return template (P10A & P10B)

  • Full employee details: names, PINs, monthly gross salary, benefits, and reliefs

  • Microsoft Excel with macros enabled to validate and generate the ZIP return file

2. Log into the iTax Portal

  1. Go to the iTax portal

  2. Log in using your KRA PIN and password

  3. Navigate to: Returns → File Return

  4. Select Income Tax and return type as PAYE (P10)

3. Fill in the P10 Excel Template

  • Enter all required employee details including earnings, reliefs, and PAYE deducted

  • Enable macros in Excel and click Validate to generate a zipped return file

  • Save the ZIP file on your computer for upload

4. Upload the Return on iTax

  1. Go back to the iTax portal

  2. Under File Return, select the tax obligation as Income Tax – PAYE

  3. Choose the relevant tax period (e.g., May 2025 for salaries paid in May)

  4. Upload the validated ZIP file

  5. Submit and download the acknowledgment receipt

5. Generate PRN and Make Payment

  1. On the iTax portal, go to Payments → Payment Registration

  2. Select:

    • Tax Head: Income Tax

    • Sub Head: PAYE

    • Payment Type: Self-Assessment

    • Tax Period: Same as the return

  3. Submit to generate a Payment Registration Number (PRN)

  4. Use the PRN to make payment via:

    • M-PESA Paybill: 222222 (Account Number: PRN)

    • Bank or mobile money channels that support PRN payments

6. Important Filing Deadlines

  • Monthly PAYE filing is due on or before the 9th day of the following month

  • Failure to file or pay attracts:

    • Penalty: Higher of 25% of the tax due or KSh 10,000

    • Interest: 1% per month on unpaid tax

7. Common Reliefs and Deductions to Include

  • Personal Relief: KSh 2,400 per month

  • Insurance Relief: 15% of premiums up to KSh 60,000 per year

  • Mortgage Interest Relief: Up to KSh 300,000 per year

  • Pension Contribution Relief: Up to KSh 20,000 per month

  • Affordable Housing Levy: 1.5% of gross monthly salary

Ensure all reliefs are correctly applied to reduce your tax liability.

8. Filing Summary Checklist

Task Status
Download P10 Excel Template Complete
Fill in and validate Excel form Complete
Upload and file on iTax Complete
Generate PRN and make payment Complete
Save acknowledgment slip Complete

Final Tips

  • Always reconcile payroll data by the 5th of each month to allow time for validation and submission

  • Use the official P10 templates from the iTax system—don’t reuse old ones

  • Keep acknowledgment slips and PRNs for your accounting records

  • If you spot an error after filing, submit an amended return as soon as possible

Need Help with PAYE Filing?

Let us simplify the process for you. From automated payroll calculations to iTax-ready reports, we help your business stay compliant and save time every month.

Call: +254 702 339 699
Email: sales@faidihr.com