Overview
Employers in Kenya registered under the National Industrial Training Authority (NITA) are required to pay an annual levy of KES 600 per employee, including casual workers. This levy is processed through the Kenya Revenue Authority (KRA) via the Unified Payroll System (UPS), which facilitates the declaration and payment process through the iTax platform.
The NITA levy must be paid by the 9th of the month following the end of your organization’s financial year. Late payments attract penalties, so timely compliance is essential.
This guide walks you through the correct procedure to file your NITA returns and make the necessary payment on iTax.
Step-by-Step Guide to Filing NITA Returns on iTax
1. Log into Your iTax Account
Visit iTax and log in using your KRA PIN and password.
2. Navigate to the Returns Section
Go to the main menu, click on “Returns”, and then select “File Return.”
3. Select Tax Obligation
Choose Income Tax – PAYE as the tax obligation.
4. Download the PAYE Return Excel Template
Click on the provided link to download the latest PAYE return Excel file.
5. Complete the PAYE Return
Fill in all required payroll details for the reporting period. Be sure to input all employees, including casuals.
6. Enter NITA Levy Details
Navigate to Sheet M1 in the Excel return form titled “NITA Levy Details.”
- Enter the details of each employee subject to the NITA levy during the accounting period.
- These details will automatically populate Rows 17 and 19 of the Tax Due sheet.
7. Validate the Return
Once all data is entered, validate the form using the built-in macro button in the Excel template. This will generate a ZIP file for uploading.
8. Upload and Submit
Go back to your iTax portal and upload the validated ZIP file.
Submit the return and download the acknowledgment receipt. A copy will also be sent to your registered iTax email address.
How to Make the NITA Levy Payment
1. Navigate to Payment Registration
On the iTax dashboard, click on “Payments” > “Payment Registration” > then click Next.
2. Fill in Payment Details
- Tax Head: Select Agency Revenue
- Tax Sub-head: Choose NITA Levy
- Tax Period: Select the period that corresponds with the return you just filed
The system will automatically populate the levy amount based on your return submission.
3. Confirm and Submit Payment Details
Click “Add” to confirm your details.
Choose your preferred payment method (bank, mobile money, credit/debit card), then submit the payment request.
4. Download Payment Slip
Once submitted, download the payment slip. You can use this to pay through your bank or an approved mobile payment channel. A copy will also be emailed to your iTax account.
Important: NITA Levy Penalties
Failure to file and pay the NITA levy on time will lead to the following consequences:
- A 5% penalty on the unpaid amount
- A fine of up to KES 100,000 for non-registration
- An additional KES 50,000 per year for continued non-compliance
Avoid these penalties by adhering to deadlines and keeping your KRA and NITA registrations up to date.
Need Help? Contact KRA
For any queries related to the NITA levy or iTax returns, you can reach out to KRA via:
- Phone: +254 20 4999 999 / +254 711 099 999
- Email: [email protected]
Conclusion
Filing your NITA returns on iTax is a straightforward process when done correctly. Ensure that you meet all the required deadlines, provide accurate employee data, and pay the levy on time to stay compliant and avoid penalties. By integrating this into your annual payroll process, you contribute to national training development while securing your organization’s regulatory standing.
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