P9 vs P10 Forms in Kenya: Understanding Their Purpose and Differences

In Kenya, understanding tax documentation is essential for both employers and employees. Among the critical forms used for income tax compliance are the P9 and P10 forms. Each plays a unique role in the Kenya Revenue Authority (KRA) system. This guide breaks down the key differences between the P9 and P10 forms, their components, usage, and how to access them on iTax.

What is a P9 Form in Kenya?

The P9 form is an annual tax document issued by an employer to each employee. It summarizes the employee's total earnings, statutory deductions, and taxes paid throughout the year. This form is crucial for individual income tax return filing on the KRA iTax portal, typically between 1st January and 30th June of the following year.

Key Components of the P9 Form

• Personal Information: Employee’s name, KRA PIN, and employer details.
• Earnings: Basic salary, non-cash benefits, retirement contributions, and taxable allowances.
• Deductions: PAYE, NSSF, NHIF, and any other statutory deductions.
• PAYE Tax: Total tax withheld and remitted by the employer to the KRA.

Purpose of the P9 Form

The P9 form assists employees in filing accurate tax returns by providing a comprehensive breakdown of their earnings and tax obligations for the year.

What is a P10 Form in Kenya?

The P10 form is a monthly summary prepared by employers, showing the total PAYE (Pay As You Earn) tax deducted from all employees’ salaries and remitted to KRA. It is used to report the employer’s PAYE obligations to the tax authority.

Key Components of the P10 Form

• Sheet A – Basic Information: Employer KRA PIN, return type (Original or Amended), return period, and entity type.
• Sheet B – Employee Details: PINs, names, salary data, and PAYE tax calculations.
• Sheet M – Affordable Housing Levy: Contributions by all employees.
• Sheet N – Tax Due: Validated summary used to prepare the file for uploading to iTax.

Purpose of the P10 Form

The P10 form ensures that employers correctly report and remit PAYE deductions, maintaining compliance with KRA tax regulations.

P9 vs P10 Form: Key Differences

Why Compliance Matters

Both forms are essential in maintaining transparent tax compliance:

• Employees: Ensure they report accurate income and avoid penalties or audits.
• Employers: Must remit taxes properly and avoid legal issues or fines.

How to Download P9 and P10 Forms from KRA iTax

How to Download Your P9 Form

1. Visit KRA iTax Portal.
2. Log in with your KRA PIN and password.
3. Go to Returns > File Returns > Income Tax – Resident Individual.
4. Select the relevant year and download your P9 under the ‘Tax Computation’ tab.

Where to Get the KRA P10 Form

1. Employers can access the P10 Excel form on the KRA iTax portal.
2. Download from the PAYE Returns section.
3. Fill out Sheets A, B, M, and N, validate, and upload to iTax.

Conclusion

Understanding the difference between the P9 and P10 forms is vital for both employees and employers in Kenya. While the P9 form supports individual tax return filing, the P10 form helps employers report PAYE accurately to KRA. Proper usage and timely submission of these forms promote a compliant and efficient tax system.