In Kenya, it is mandatory to file tax returns annually as long as you have acquired your KRA PIN. That also applies to students and unemployed Kenyans who are required to file nil returns without fail. Want to know how to file KRA nil returns?
Before we dig deep into how to file KRA nil returns, let’s first learn what these nil returns are.
What are nil returns?
Nil income tax returns help the taxman to identify all taxpayers that fall below the taxable income or are unemployed and do not earn any salary such as university students. Why must I file nil returns?
Well, negligence to file KRA nil returns attracts a hefty penalty fee. In the past, it used to be Ksh 1000, but the taxman reviewed this to KSh 10,000. So imagine having to pay 10,000 annually for something that will take you less than five minutes to complete.
According to KRA iTax returns figures, by the end of June 2019, KRA reported having collected Ksh 1.580 trillion as opposed to the targeted Ksh 1.435 trillion projected by the Treasury.
Furthermore, according to the Kenya Revenue Authority, only 24 million employees and businesses did file their tax returns indicating that thousands of Kenyans failed to do so. Do not be in the latter category. Here is a comprehensive guide on how to file returns thereby avoiding the preventable fines set by the taxman.
Requirements for filing KRA Nil Returns
You need the following before filing your Tax returns on iTax:
- Your KRA PIN
- Your iTax account
Who Should File Nil Returns
Speaking to glowniche.com, 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
- You can download the app on the Google play store
- Log in with Pin and iTax password
- Click on File Nil Return
- Select Resident or Non-resident individual
- Click Submit