In Kenya, all individuals with an active Personal Identification Number (PIN) are required to file tax returns annually, even if they have no income to declare. Filing a nil return informs the Kenya Revenue Authority (KRA) that you did not earn any taxable income during the tax year.
Failure to file returns, including nil returns, can lead to penalties and may restrict access to certain government services. This guide provides a step-by-step process for filing nil returns on the iTax platform.
What You Need Before Filing Nil Returns
- Active KRA PIN: Ensure your PIN is valid and active. You can register for one on the KRA website if you don’t already have one.
- Tax Year: Know the tax year for which you’re filing returns (e.g., 2024 for returns filed in 2025).
- Internet Access: A computer or smartphone with stable internet. Using a computer is recommended for smoother navigation.
- No Tax Obligations: Nil returns apply only if you had no taxable income during the year.
Step-by-Step Guide to File Nil Returns
Step 1: Log in to iTax
- Visit the iTax Portal.
- Enter your KRA PIN and password.
- If you’ve forgotten your password, click “Forgot Password” to reset it via email.
Step 2: Navigate to the Returns Section
- Once logged in, locate the main menu on the portal.
- Click on “Returns” to access the return filing options.
Step 3: Select “File Nil Return”
- In the “Returns” menu, select “File Nil Return” from the available options.
- This will redirect you to a page where you can choose your tax obligation.
Step 4: Choose Your Tax Obligation
- Select the relevant tax obligation from the drop-down menu:
- Income Tax Resident (for Kenyan residents).
- Income Tax Non-Resident (for foreign residents).
- Click “Next” to proceed.
Step 5: Confirm the Tax Period
- Review the tax period displayed (e.g., 1st January 2024 to 31st December 2024).
- Confirm that the dates are correct and click “Submit.”
- A pop-up window will appear asking for confirmation. Click “OK.”
Step 6: Download the Acknowledgment Receipt
- After submission, you’ll be directed to a confirmation page.
- Click “Download Returns Receipt” to save a copy of the acknowledgment.
- This receipt serves as proof that you have successfully filed your nil return.
Additional Tips for Filing Nil Returns
- Meet the Deadline: Ensure you file by 30th June of the following year to avoid penalties.
- Seek Support if Needed: Contact KRA for assistance:
- Email: [email protected]
- Phone: +254 20 4 999 999 or +254 711 099 999
- Monitor Your Tax Obligations: Stay updated on your tax status to avoid surprises.
- Understand Eligibility: Nil returns apply only to individuals with no taxable income. If you earned any income, file regular returns even if it’s below the taxable threshold.
Final Remarks
Filing nil returns is a straightforward process that ensures compliance with tax laws and prevents penalties. By following the steps outlined above, you can easily file nil returns on the iTax platform and remain in good standing with the Kenya Revenue Authority.
Happy filing! Compliance made simple.
