In Kenya, the Kenya Revenue Authority (KRA) requires all individuals with an active Personal Identification Number (PIN) to file tax returns annually. This applies even if you haven’t earned any income during the tax year. Filing a “nil return” informs the KRA that you have no taxable income to declare.
Failing to file your tax returns, including nil returns, can result in penalties and affect your access to certain government services. To avoid complications, it’s important to understand how to file nil returns in Kenya. This article provides a comprehensive guide on filing nil returns via the iTax platform.
Before you start filing your nil returns, ensure you have the following:
Active PIN: You need a valid and active Personal Identification Number (PIN) to access the iTax platform. If you don’t have a PIN, register for one on the KRA website.
Tax Year: The Kenyan tax year runs from January 1st to December 31st. You’ll be filing a nil return for the previous year’s income.
Internet Access: Use a computer or smartphone with stable internet to access the iTax platform. A computer is recommended for a smoother experience.
Tax Obligations: Ensure that nil returns are applicable to you. If you had any taxable income, even below the taxable threshold, you’ll need to file a regular tax return.
With these details ready, let’s move to the step-by-step process.
The first step is to log in to the iTax platform using your KRA PIN and password. If you don’t remember your password, click on “Forgot Password” and follow the instructions to reset it via email.
Once you reset your password, log in again using your PIN and new password.
After logging in, navigate to the main menu. Look for the “Returns” section and click on it to access the tax return filing options.
Under the "Returns" section, you’ll see several options. Choose “File Nil Return” to proceed. This option is only applicable if you haven’t earned any taxable income during the tax year.
On the “File Nil Returns” page, select your tax obligation from the drop-down menu. You can choose between Income Tax Resident or Income Tax Non-Resident depending on your status.
Once selected, click “Next” to proceed.
On the next page, confirm the tax period for which you are filing the nil return. Ensure the dates are correct and then click Submit. A pop-up window will ask you to confirm your action—click “OK” to finalize.
After successfully submitting your nil return, you’ll be redirected to a confirmation page. Download the Acknowledgement Receipt as proof of your submission. It’s important to keep this document for future reference.
File Before the Deadline: The deadline for filing returns is typically 30th June of the following year. Missing the deadline can result in penalties.
Contact KRA for Assistance: If you encounter any difficulties, reach out to the KRA support team via email (callcentre@kra.go.ke) or phone (+254 20 4 999 999 or +254 711 099 999).
Track Your Tax Obligations: Stay informed about your tax obligations throughout the year to avoid surprises during the filing season. Consider consulting a tax professional if necessary.
File Regular Returns If Necessary: Nil returns are only applicable if you have no taxable income. If you earn an income, even if it’s below the taxable threshold, you’ll need to file regular tax returns.
Filing nil returns in Kenya is a simple yet essential process to stay compliant with tax regulations. Even if you haven’t earned any income, filing nil returns ensures you avoid penalties and remain in good standing with the KRA. Follow this guide to file your nil returns quickly and efficiently via the iTax platform. Happy filing!
Savanis