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How To Claim A Tax Refund From KRA in Kenya

This guide explains how taxpayers in Kenya can claim a tax refund from the Kenya Revenue Authority (KRA). Tax refunds occur when individuals or corporations overpay taxes or qualify for specific tax incentives. Here’s a step-by-step guide to understanding eligibility, the types of refunds, and the application process.


Types of Tax Refunds

  1. Income Tax Refunds
    These arise from:
    • Over-deduction of tax (PAYE) by employers.
    • Tax incentives such as mortgage interest relief, insurance premium relief, and annual tax relief.
    • Exemptions due to disability.
    • Overpayment of installment taxes.
    • Withholding tax or advance tax credits.
    • Note: Claims must be made within five years of the tax payment date.
  2. VAT Refunds
    Common causes include:
    • Excess credits from zero-rated supplies or withholding VAT.
    • Bad debts where no payment has been received for the supply within 3–4 years.
  3. Excise Tax Refunds
    Refunds apply for:
    • Damaged or stolen goods during transportation.
    • Returned goods as per the contract of sale.
    • Excise duty paid on materials used to manufacture un-excisable goods.

Eligibility for Tax Refunds

You may qualify for a tax refund if you fall into one of these categories:

  1. Life and Education Insurance Policyholders:
    • If relief wasn’t received from your employer.
  2. Mortgage or Home Ownership Plan Holders:
    • Must be from institutions listed under the 4th schedule of the Income Tax Act for owner-occupied properties.
  3. Residents Without Personal Relief:
    • If personal relief was not granted during the tax year.
  4. Excess Tax Deduction:
    • If tax deducted at source exceeds your final liability.

Steps to Claim a Tax Refund

  1. Log in to iTax
    • Visit iTax Portal.
    • Use your KRA PIN and password to log in.
  2. Select Refund Option
    • Navigate to the “Refunds” menu.
    • Select the applicable tax obligation for your claim.
  3. Verify Details
    • Confirm your taxpayer information.
  4. Provide Bank Details
    • Enter the bank account details for receiving the refund.
  5. Select Refund Type and Reason
    • Choose the refund type.
    • Specify the claim reason and provide the refund amount.
  6. Upload Supporting Documents
    • Attach all required documentation.
  7. Submit the Claim
    • Review the information and submit your claim.

Tips for Successful Refund Claims

  • Ensure all claims are submitted within the stipulated time frame via iTax.
  • Have valid debt status reports before processing.
  • Be prepared for pre-payment audits, especially for first-time claimants.

Processing Time

  • Refund processing takes at least 90 working days (Monday to Friday).
  • Use the Refund Acknowledgement Receipt number provided upon submission to track your refund status.

Penalties for Fraudulent Claims

Submitting a false claim is a serious offense, punishable by:

  • A penalty equal to twice the value of the fraudulent claim.

KRA Contacts

By adhering to these guidelines, you can efficiently navigate the tax refund process and recover overpaid taxes or eligible incentives.

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