In Kenya, the Kenya Revenue Authority (KRA) requires all individuals with an active Personal Identification Number (PIN) to file annual tax returns. This obligation applies even if you haven’t earned any income during the tax year. Filing a “nil return” informs KRA that you have no taxable income, ensuring compliance with tax laws and avoiding penalties.
This guide will walk you through the step-by-step process of filing nil returns on the iTax platform, covering everything you need to know.
Why File Nil Returns?
Failing to file tax returns, even if you have no income, can result in penalties and may affect your ability to access key government services. Filing nil returns is straightforward and ensures you stay compliant.
Before You Begin: Requirements
Ensure you have the following before starting:
- Active KRA PIN: Required to log in to the iTax platform.
- Tax Year: You will be filing for the previous calendar year (January 1st to December 31st).
- Internet Access: Use a computer or smartphone with a stable internet connection for a seamless experience.
- No Tax Obligations: Nil returns apply only if you have no taxable income for the previous year.
How to File Nil Returns: Step-by-Step Guide
Step 1: Log in to iTax
- Visit the iTax portal: https://itax.kra.go.ke.
- Enter your KRA PIN and password, then click “Login.”
- If you’ve forgotten your password, click “Forgot Password” to reset it. An email with instructions will be sent to your registered address.
Step 2: Navigate to the “Returns” Section
- Once logged in, locate the “Returns” tab on the iTax dashboard.
- Click on it to access various return filing options.
Step 3: Select “File Nil Return”
- Under the “Returns” menu, choose the option “File Nil Return”.
- This will take you to a new page to specify your tax obligations.
Step 4: Choose Your Tax Obligation
- On the “File Nil Returns” page, use the dropdown menu to select your tax obligation:
- Income Tax Resident: For Kenyan residents.
- Income Tax Non-Resident: For non-residents.
- After selecting your tax obligation, click “Next” to proceed.
Step 5: Confirm Tax Period and Submit
- The next page will display the tax period for which you are filing. Verify the details are correct.
- Click “Submit”, then confirm your action in the pop-up window by clicking “OK”.
Step 6: Download the Acknowledgment Receipt
- After submission, a confirmation page will appear.
- Click “Download Returns Receipt” to save a copy of your acknowledgment.
- Keep this receipt as proof of compliance for future reference.
Additional Tips for Filing Nil Returns
- File on Time: Ensure you file before the June 30th deadline to avoid penalties.
- Seek Assistance: For difficulties, contact KRA via:
- Email: [email protected]
- Phone: +254 20 4 999 999 or +254 711 099 999
- Visit your nearest KRA office for in-person assistance.
- Stay Informed: Regularly track your tax obligations and consult a tax professional if necessary.
Key Notes
- Eligibility: Nil returns are for individuals with no taxable income. If you earned income below the taxable threshold, you must still file a regular tax return.
- Compliance: Filing ensures your tax compliance status remains valid, which is necessary for accessing government services like business permits, passports, and loans.
Final Remarks
Filing nil returns in Kenya is a simple yet essential process to maintain compliance with tax laws. By following the steps outlined above, you can file your nil returns efficiently on the iTax platform.
Stay compliant and avoid penalties. Happy filing!
