In Kenya, individuals with a Kenya Revenue Authority Personal Identification Number (KRA PIN) are obligated to file income tax returns. However, certain circumstances allow for the submission of a NIL return, which signifies that no taxable income was earned during the specified period. Below are the conditions under which you can file a NIL return with the KRA:
Eligibility Criteria
Income Below Taxable Minimum: If your income falls below the taxable minimum threshold, currently set at Ksh. 24,000.
No Employment or Income Tax Payment in Previous Year: If you were not employed or did not pay any income tax in the preceding tax year (January 1st to December 31st).
Student with a KRA PIN for HELB Applications: College or university students who obtained a KRA PIN for Higher Education Loans Board (HELB) applications.
What is a NIL Return?
A NIL return informs the KRA that you either had no taxable income in the previous year or your income falls below the taxable threshold.
Filing Deadlines and Penalties
The deadline for filing income tax returns typically falls in June each year. You can file anytime between January and the deadline. Failing to file by the deadline incurs a penalty of Ksh. 2,000 (previously Ksh. 1,000) per year, with an additional 1% interest per month until fully paid. Outstanding penalties may prevent you from obtaining a tax clearance certificate from the KRA.
How to File KRA NIL Returns Online
Follow these steps to file NIL returns online:
Step 1: Login to the KRA iTax Portal
Visit the KRA iTax Portal: https://itax.kra.go.ke/
Enter your Credentials:
- Enter your KRA PIN and click “Continue.”
- Input your password and Security Stamp (solve the provided sum).
- Click “Login.”
Step 2: File NIL Returns
Select “File Nil Return”:
- Navigate to the “Returns” tab and select “File Nil Return” from the menu.
- Choose the applicable tax obligation (usually “Income Tax – Resident Individual”).
- Click “Next” to proceed.
Enter Return Period:
- Enter the “Return Period From” and “Return Period To” dates for the previous tax year (e.g., 01/01/2021 – 31/12/2021).
- Click “Submit.”
Confirmation:
- Confirm your intent to file a NIL return by clicking “YES.”
Completion:
- Congratulations! Your NIL return has been successfully filed. You can download the receipt for your records if needed.
- Remember to log out, especially if using a public computer.
Filing NIL Returns using the iTax Mobile App
- Download and install the iTax mobile app (approximately 4MB).
- Log in with your KRA PIN and password.
- Click on “File NIL Return.”
- Choose “Resident” or “Non-Resident Individual.”
- Click “Submit.”
KRA Customer Care Contacts
For any inquiries or assistance, reach out to KRA through:
- Tel: 020-4999999, 020-4998000
- Cell: 0711-099999
- Email: callcentre@kra.go.ke