The Kenya Revenue Authority (KRA) is the government agency in Kenya responsible for the assessment, collection, and accounting of all revenues that are due to the government, by the laws of Kenya. KRA manages taxation, customs, and excise duties in Kenya.
Whether you are an employee, employer, self-employed, or a business holder, you are required by law to disclose your income and file your taxes to the Kenya Revenue Authorities. Also, if you are going to make some important transactions like buying and selling land, importing goods, registering a business, etc, KRA, is mandated to track your transactions through their service, and the only way for you to be able to perform these transactions required that you have to disclose and file your taxes to the Kenya Revenue Authorities.
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Upon disclosing your income and filing your taxes to the Kenya Revenue Authority, you will be given a KRA PIN which stands as an identifier enabling the revenue authority to track and monitor financial transactions, ensuring adherence to tax regulations.
What are KRA Nil Returns?
You are required by law to have a KRA PIN for you to be able to perform some transactions like selling land, importing goods, and registering a business. Any individual or business with a KRA PIN but did not generate any income from their sources (or have a source of income) to report must file a Nil Return online through the iTax portal to maintain compliance with tax regulations.
KRA Nil Returns refer to a tax filing submitted to the Kenya Revenue Authority (KRA) indicating that a taxpayer earned no taxable income during the previous year. Filing Nil Returns ensures that the taxpayer remains in good standing with the Kenya Revenue Authorities and avoids penalties for non-compliance.
Requirements For Filing KRA NIl Returns
Note that the only platform designed by the Kenya Revenue Authority to file your KRA income tax returns is the iTax portal. To access the iTax portal, you need the following;
- Your KRA PIN: The KRA PIN is issued when you register for tax payments through the iTax portal or at Huduma centers. This pin is required to log in to the KRA websites.
- Your iTax Password: Your KRA password was sent to your email, during your KRA PIN registration and you can reset your password if you have forgotten it, provided that you still have access to the email you used to register.
How to File KRA Nil Returns
Filing a KRA Nil return can be done on your mobile phone, laptop, or computer, and the process is straightforward. You can complete the process in less than 10 minutes at your house without visiting any cyber cafe or Huduma centers. Here is a step-by-step guide to filing a KRA Nil Return;
That is how to file KRA Nil Returns for students and unemployed citizens who did not make any income in the previous year. College and University students who get their KRA PIN to apply for HELB loans can also follow the same procedure to file a Nil Return.
Can you file a zero-income tax return?
Yes, you must file a zero-income tax return if you have a KRA PIN. On the iTax portal, this is called a Nil Return (which means you made no income) and it is mandatory to follow government regulations as failure to do so leads to a penalty.
When is the Deadline to File Tax Return in 2024?
Kenya Revenue Authority (KRA) has set June 30th as the deadline to file income tax returns in 2024. This means you are to file your tax return for 2023 before July 30th, 2024 on the iTax portal whether you have a source of income or not, as long as you have a KRA PIN.
How Much is the KRA Penalty for Late NIL Return Filing?
Failure to file Nil Returns or filing them late results in KRA penalties. According to the Tax Procedures Act, If you do not file nil returns as an unemployed student, you will incur a penalty of either 5% of the tax due or Kshs. 2,000, whichever is higher. The same penalties apply to employed individuals.
How Much is the KRA Penalty For Late Income Tax Returns?
The penalty for late filing of income tax returns with the Kenya Revenue Authority (KRA) is either 10% of the tax due or Kshs. 2,000 for individual taxpayers, whichever is higher up to a maximum of Kshs. 1 million. For corporations or business taxpayers, the penalty is either 25% of the tax due or Kshs. 20,000, whichever is higher.
If you don’t earn any income but have a KRA pin, you need to file a KRA Nil Return to the Kenya Revenue Authorities via the iTax portal to declare that you made no revenue. Failure to do so leads to penalties. The deadline to file your KRA Nil Returns is June 30th.
