PAYE is a method of tax collection from individuals, both residents, and non-residents, in employment. One can pay PAYE though Mpesa. All employers need to register for this service.
The PAYE is usually deducted from the employees’ salaries and wages at the prevailing rates. PAYE is charged to people who earn more than Ksh. 24,000 per month.
PAYE is filed online via iTax. If you do not have PAYE to declare, then you fill a NIL return
You can pay for PAYE through Mpesa. You have to file your returns online first. Once that is done, you will be required to generate a payment slip via iTax.
You can use the Kenya Revenue Authority pay bill number 572572 to make your PAYE payments. The account number you will use is the payment registration number at the right corner of the payment slip.
Make sure you pay your taxes before the 9th of the following month. Failure to do so on time will attract a penalty of Ksh. 10,000.
Paying tax through iTax
Paying tax via iTax is easy and you will only need to follow the simple steps below
- Visit the iTax page on the KRA portal by using the link https://itax.kra.go.ke/KRA-Portal/
- Log in to iTax using your user ID and password
- On the Menu, select “Payments” and click “Payment registration
- An e-Payment registration form will open with the basic details of the taxpayers and other tax details
- In the registration form, you should enter
- Your tax head
- Tax payment type
- Tax period
- Tax amount
- Payment mode
- When you submit the e-Payment registration form, an e-slip number will be generated
- Then pay PAYE through Mpesa by using the paybill number 572572 and the account number that will be assigned to you on the payment slip.