Tax-filing season is here and every Kenyan is out to beat the June 30, 2020 deadline. Every Kenyan, who has a valid KRA PIN is required to declare their annual income every year.
Even without any taxable income, every Kenyan is required to file their taxes and in this event, one is required to file a nil return on the KRA iTax portal.
Who Should File Nil Returns
Speaking to Kenyans.co.ke, Victor Mangeni, a Tax Associate, explained that nil returns are filed by Kenyan citizens who are either unemployed (such as university students) or are employed but earn a salary below the country's taxable income.
"University students who had applied for HELB and had to apply for a KRA Pin, and those who are employed but earn less than Ksh13,950 per month should file nil returns," he explained.
Also, companies that haven't started making money from their activities are required to file nil returns.
"When one starts a business, they should have a KRA Pin to get a compliance certificate. Most times these registered companies haven't started making money. The directors should also file nil returns," Mangeni explained.
How to File Nil Returns in Kenya
To file a nil return, all you need is your copy of the KRA PIN certificate and an account on KRA's iTax website.
1. First, click on www.itax.kra.go.ke and log in.
2. Put in your user ID or KRA Pin. After you insert the KRA Pin, click on the continue button below it.
3. An empty tab will appear where you will input your password and then proceed to do simple arithmetic (known as the Security stamp) below that and click enter.
4. Once you have accessed the website, you will see a red menu bar. On it click the 'Returns' icon and a drop-down will appear; select the File Nil Returns Option.
5. On the new page, at the 'Type' tab fill 'self', on the taxpayer pin insert your KRA pin and on the 'Tax Obligation' option insert 'Income tax resident.' then click 'Submit'.
6. If the process is successful, an e-return acknowledgment receipt will appear. Click download the receipt and you will be all done. You can print or email yourself the receipt for safekeeping.
How to file a subsequent nil return on iTax mobile app
If you've ever filed an itax form before, you can file a subsequent nil return through the itax mobile app
1. You can download the app on the Google play store
2. Log in with Pin and iTax password
3. Click on File Nil Return
4. Select Resident or Non-resident individual
5. Click Submit
Frequently Asked Questions (FAQs)
1. The President, in April 2020, directed that those who are earning less than Ksh24,000 be exempted from Pay as You Earn (PAYE) in April 2020. Does that mean I am exempt?
"That directive will apply when one is filing their returns in 2021 for the 2020 period. For this year's filing, we'll go with the Ksh13,950 mark and below for nil returns," Mangeni clarified.
2. What if I was unemployed for some months but got a job that put me in the taxpaying bracket from mid-year.
"You will still file for the months where you became applicable for taxes. You will be required to file with your income for the months your income amount became applicable for tax," he added. For income tax filing, you can find the procedure here
3. What are the penalties for not filing on time?
"You will be fined Ksh2,000 per year for not filing before the June 30, deadline. For companies, it is Ksh10,000 a year. The earlier you file, the better," the tax associate conveyed.
To access the self-service menu call the numbers 020 4999999 or 0711 099999 and press:
'Button 1' for Password reset
'Button 2' for pin retrieval
'Button 3' for unlock your account
For further inquiries:
Call: 020 4999999 or 0711 099999
Email: call email@example.com