In Kenya, it is compulsory to file tax returns yearly as long as you have obtained your KRA PIN number. That further applies to students and unemployed Kenyans who are expected to file nil returns without fail also done annually. Want to know the easiest method on how to file KRA nil returns? Well, read on.
Before we dig deeper into how to file KRA nil returns in the iTax portal, let’s first learn what those nil returns are.
What are KRA nil returns?
Nil income tax returns assist the taxman to identify all taxpayers that fall under the taxable income or are unemployed and do not receive any salary such as university and college students. Why must I file KRA nil returns?
Well, failure to file KRA nil returns draws a hefty penalty fee. In the past few years, it used to be Ks 1000, but the taxman reconsidered this to KS 20,000. So just imagine having to pay 20,000 yearly for something that will take you less than five minutes to perform.
According to KRA iTax returns values, by the end of June 2017, KRA published having collected Ks 1.365 trillion as opposed to the targeted Ks 1.44 trillion projected by the Treasury.
Moreover, according to the Kenya Revenue Authority, just 24 million employees and businesses did file their income tax returns, indicating that thousands of Kenyans declined to do so. Do not be in the latter category for your own benefit. Here is a comprehensive step by step guide on how to file nil returns, thereby avoiding the huge preventable fines set by the taxman.
Requirements for filing KRA Nil Returns on the iTax portal
You need the following things before filing your Tax returns on iTax:
- Your KRA PIN
- Your iTax account
The following guides will assist if you have any problems with these two important requirements:
How to open a KRA iTax account
Please note that you do not need an extra nil tax return form to file your KRA nil returns as the method is just similar to that of filing the average LKRA returns.
Furthermore, the evolution of iTax that went live in 2013 has made it simpler for Kenyans to file their yearly KRA tax returns. That is because you can quickly do it at the convenience of your office or house without having to bother KRA offices.
1. Login to iTax portal
- Visit https://itax.kra.go.ke/KRA-Portal
- On your left-hand side, you will see an empty tab, key in your KRA Pin number or User ID here and click on continue.
- Enter your password and key in answer to the Security Stamp question (Security Stamp question is something like 100+8=??)
- In case you don’t memorize your password, just click on the forgot password button located at the bottom right of the page and then follow prompts to set a new password.
2. Select File Nil Returns
After a successful login to the portal, you will be redirected to a page with a red menu on top.
- Click on the ‘Returns’ image and a drop-down menu will appear; choose the File Nil Returns option.
- You will then be asked to fill in some information, as shown below.
Taxpayer Pin: Your KRA Pin
Tax Obligation: Income tax Resident
- After you are done, click on next.
3. Select the Income-tax- resident individual nil E-return
You will be automatically redirected to a new page and you have to enter your KRA Personal Identification Number, Wife Pin (Just leave it blank if you are not married), Return period dates which in this matter in 2019 will be 01/01/2018 to year end 31/12/2018 (this is programmed, once you click on the small calendar on your right side).
Press the submit button when you are done filling the above information.
If the submission was done successfully, an e return acknowledgment receipt, KRA would be generated on the iTax platform. Click on the download Return Receipt, and you will be done until next year.
The above procedure takes just some few minutes to complete, given that you have a stable internet connection on your electronic device.
KRA tax returns deadline 2019
Please be informed that the KRA tax return deadline usually is on the 30th of June each year. For this reason, you can quickly file your nil returns on or before that deadline date. You can even do it right now after you finish reading this article.
KRA plan to reconfigure the iTax system for the file of nil returns
Just recently, the Kenya Revenue Authority (KRA) broadcasted that it intends to discontinue the processing of nil tax returns. According to Benson Korongo, the current KRA Commissioner of Domestic Taxes, the move is aimed at hindering tax cheats. Following this new improvement, it is expected that the filing of returns that started on January 1 ending 30 June might encounter some pile-up of filings in the suspended category.
KRA Returns FAQ
Are you unemployed but have a PIN?
If yes, remember that all PIN holders must file their returns even when you have No source of income.
Do I need to visit a KRA office or branch once you file online?
No, you do not: once you file your KRA returns, you will get an acknowledgment receipt in your email address. You can download a copy from your iTax online profile.
Do you need to file your returns if you registered for a KRA PIN this year?
Your Personal Income Tax Returns are due immediately following the end of each year, i.e. 31st December.
All individuals that file KRA nil tax returns are urged to exercise tolerance in case of any delays as the KRA Technical team works on reconfiguring the iTax online system. As such, do file your KRA nil returns as quickly as possible before the rumoured suspension comes into implementation just as I have done mine today morning. Let us know if this article was valuable.