How to File Turnover Tax (TOT) on KRA iTax in Kenya

Filing turnover tax (TOT) on KRA iTax is a requirement for most registered businesses in Kenya, yet many entrepreneurs still find the process confusing or unnecessarily tedious. The system itself works reasonably well once you understand the steps, but getting there requires clarity on what documents you need, when deadlines fall, and how the portal actually behaves.

Turnover tax applies to businesses with an annual turnover between KSh 500,000 and KSh 5 million. If your business falls within this bracket, you're required to file TOT monthly using the KRA iTax portal at itax.kra.go.ke. The tax rate is 3% of your monthly turnover, calculated on a self-assessment basis.

Getting Started: What You Need Before Filing

You'll need your KRA PIN (Personal Identification Number), which you should have received when you registered your business. Keep this handy—you'll use it every time you log into the iTax portal. You'll also need accurate monthly turnover figures. This is where many businesses stumble: you must record all sales, whether cash or M-Pesa transactions, regardless of whether you've actually received payment.

Before filing your first TOT return, confirm your business category and turnover threshold on the iTax portal. Misclassifying your business can lead to incorrect tax calculations and potential penalties later.

Filing TOT on iTax: The Step-by-Step Process

Log into iTax using your KRA PIN and password. Navigate to the "Returns" section, then select "Turnover Tax Return." The portal will prompt you to enter your monthly turnover figure for the relevant month.

Enter the gross turnover for the month in question. This is total revenue before any deductions. KRA calculates 3% of this amount automatically. Review the calculated tax amount carefully—mistakes here are common and costly to correct later.

Once you've entered your figures, the system generates a payment reference number. You can pay directly through the portal using M-Pesa, bank transfer, or other KRA-approved payment methods. Payment must typically be made by the 20th of the following month, though check the official portal for current deadlines.

After payment confirmation, download your acknowledgment receipt immediately. Save this document in a safe location—you'll need it if KRA ever queries your filing history. The portal should show your return as "Filed" once payment clears, usually within 24-48 hours.

Common Issues and How to Avoid Them

The most frequent problem is late filing. Missing the deadline doesn't just mean penalties; it can trigger compliance notices from KRA. Set phone reminders for the 15th of each month to file for the previous month's turnover.

Another pitfall: underreporting turnover. KRA cross-references iTax filings with bank deposits, M-Pesa transaction records, and supplier data. Underreporting by just a few thousand shillings compounds quickly and invites audit flags.

If you're unsure about your filing obligations or have complex turnover patterns, KRA tax experts on Kaziiko can help clarify your status and ensure compliance. Many accountants also offer affordable monthly filing services for businesses that want to avoid the administrative headache entirely.

Portal glitches do happen, particularly during month-end surges. If you encounter errors or cannot access your account, contact KRA's iTax support line directly rather than waiting until the deadline approaches.

Frequently Asked Questions

What if my turnover falls below KSh 500,000 in a month?

You're still required to file a return, even if your turnover is zero. Report the actual figure, and your TOT liability will be nil for that month. Filing nil returns keeps your compliance record clean.

Can I file TOT returns late?

Technically yes, but penalties apply. KRA charges interest on late payments and may issue compliance notices. File on time whenever possible. If you've missed filings, contact KRA to arrange catch-up filing before initiating an audit review.

Do I need to file TOT if I'm on the presumptive tax scheme?

No. Businesses under the presumptive tax scheme are exempt from filing monthly TOT returns. However, confirm your scheme status on iTax to avoid accidental double-filing.

What documents should I keep for TOT filings?

Retain all monthly bank statements, M-Pesa transaction summaries, sales invoices, and iTax acknowledgment receipts for at least five years. These are your proof of turnover calculation should KRA audit your returns.