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

• Phone: +254 20 4 999 999 / +254 711 099 999
• Email: [email protected]

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