In Kenya, the Kenya Revenue Authority (KRA) requires all individuals with an active Personal Identification Number (PIN) to file tax returns annually. This applies even if you haven’t earned any income during the tax year. Filing a “nil return” informs the KRA that you have no taxable income to declare.
Failing to file your tax returns in Kenya, including nil returns, can result in penalties and affect your ability to access certain government services. So, even if your bank account hasn’t seen much action, understanding how to file nil returns in Kenya is crucial.
This guide will walk you through the process of filing nil returns on the iTax platform, the official online tax filing system in Kenya. I’ll cover everything you need to know, from the requirements to the step-by-step filing process.
Table of Contents
Before You Begin: What You’ll Need
Before you start filing your nil returns, make sure you have the following information on hand:
- Active PIN: To access the iTax platform, you’ll need a valid and active PIN. If you haven’t obtained a PIN yet, you can register for one online at the KRA website.
- Tax Year: The Kenyan tax year runs from January 1st to December 31st. You’ll be filing a nil return for the previous year’s income.
- Internet Access: To access the iTax platform, you’ll need a computer or smartphone with a stable internet connection. It’s recommended that you use a computer for a smoother filing experience.
- Tax Obligations: Nil returns are only applicable if you have no tax obligations for the previous year. If you had any taxable income, even if it falls below the taxable threshold, you’ll need to file a regular tax return.
Now that you have all of your necessary information let’s begin the filing process.
How to File Nil Returns in Kenya: 6 Easy Steps
Step 1: Login to iTax
The first step is to log in to the iTax platform using your KRA PIN and password. If you don’t have a password yet, click on “Forgot Password,” and the reset password will be sent to your email address. Follow the instructions in your email to reset your password.
After resetting your password, log back into the KRA portal using your PIN and new password.
Step 2: Navigate to the Returns Section
Once logged in, look for the main menu options within the iTax portal. Locate the section labeled “Returns” and click on it to access the return filing functionalities.
Step 3: Select “File Nil Returns”
Under the “Returns” section, you will find the following options:
- File Return
- File Amended Return
- View Filed Return
- File Nil Return
- ITR For Employment Income Only
- Download PAYE CSV
To file a nil return, click on the “File Nil Return” option. This will take you to a new page where you will be required to select the tax obligation for which you want to file a nil return.
Step 4: Choose Your Tax Obligation
On the “File Nil Returns” page, click on the drop-down menu and select the appropriate tax residency obligation. This could be Income Tax Resident or Non-Resident, depending on your current tax status. So, if you are a resident of your country, select Income Tax Resident. If you are not a resident, select Non-Resident.
Once you have selected the tax obligation, click on “Next” to proceed to the next step.
Step 5: Confirm the Tax Date
The next page will show you the tax date for which you want to file a nil return. Confirm that the date is correct and click “Submit” to continue. A pop-up window will appear, asking you to confirm your action. Click “OK” to proceed.
Step 6: Download the Acknowledgement Receipt
Once your nil return has been successfully submitted, you will be directed to a “Thank You” page. Click on the “Download Returns Receipt” button to save a copy of your submission. This is important as it serves as proof that you have filed your nil return.
Congratulations! You have successfully filed your nil return for tax purposes. Make sure to keep a copy of the acknowledgment receipt for future reference.
Additional Tips for Filing Nil Returns in Kenya
- Make sure to file your nil returns within the stipulated deadline, which is usually 30th June of the following year. Filing after the deadline can result in penalties.
- If you have any issues or difficulties with filing your nil returns, you can contact the KRA support team via email (callcentre@kra.go.ke), telephone (+254 20 4 999 999 or +254 711 099 999), or by visiting a KRA office near you.
- Keep track of your tax obligations throughout the year to avoid any surprises when it’s time to file your returns. Consult with a tax professional if necessary to ensure that you are meeting all requirements.
- Remember that filing nil returns is only applicable to individuals who have no taxable income. If you earn an income even below the taxable threshold, you’ll need to file regular tax returns.
Final Remarks
Filing nil returns in Kenya is a simple process that can save you from penalties and ensure compliance with tax laws. Make sure to file your nil returns annually, even if you haven’t earned any income during the tax year. By following the step-by-step guide outlined above, you can easily file your nil returns on the iTax platform. Happy filing!
