Filing nil tax returns with the Kenya Revenue Authority (KRA) is a mandatory obligation for all registered taxpayers with an active KRA PIN, regardless of whether they have earned income in a given financial year.
For students, unemployed individuals, or those without taxable income, filing nil returns is a legal requirement to avoid penalties and maintain compliance with Kenyan tax laws.
This article walks you through the essentials of filing nil returns and offers a broader understanding of the KRA PIN and its applications.
Essential Requirements for Filing Nil Returns
Before initiating the filing process, ensure you have the following:
- KRA PIN
- iTax login credentials (PIN and password)
- Stable internet connection
- Active email address for communication and receipt download
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What is a KRA PIN?
A Personal Identification Number (PIN) is a unique code issued by the Kenya Revenue Authority that identifies individuals and entities in transactions involving tax matters or government services.
Despite being termed “personal,” the KRA PIN applies to individuals, companies, clubs, societies, and even trusts. For sole proprietors, the individual’s PIN is used for all business-related tax filings.
Who Needs a KRA PIN?
You are required to obtain a KRA PIN if you:
- Are employed or in business
- Earn rental income
- Are applying for a Higher Education Loans Board (HELB) loan
- Engage in property, motor vehicle, or land transactions
- Need to register a business or company
- Are importing goods or seeking government tenders
Where Is a KRA PIN Used?
A KRA PIN is vital for the following transactions:
- Land transactions and stamp duty
- Motor vehicle registration
- Business name/company registration
- Tax compliance (Income Tax, VAT)
- Water and electricity connections
- Government procurement contracts
- Insurance underwriting
- Importation and customs clearance
How to File Nil Returns on iTax (Step-by-Step)
Here’s how to file nil returns if you had no taxable income in the year:
- Visit the KRA iTax Portal
Open your browser and go to: https://itax.kra.go.ke
- Log in to Your iTax Account
Use your KRA PIN and password to access your account.
- Navigate to the Returns Menu
Once logged in, click on the “Returns” tab and select “File Nil Returns”.
- Select Tax Obligation
Choose “Income Tax – Resident Individual” (or appropriate category based on your status).
- Enter the Return Period
Input the correct return period (e.g., 01/01/2024 to 31/12/2024).
- Submit and Confirm
After completing the form, submit your return. You will receive a message confirming successful filing.
- Download Receipt
Click “Download Returns Receipt” for your records. This is important for future reference or verification.
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