Filing Nil tax returns is a legal requirement for all Kenyan taxpayers who did not earn taxable income in a given financial year. Whether you’re a student, unemployed, or own a dormant business, you are still required to file tax returns to avoid penalties from the Kenya Revenue Authority (KRA).
Thankfully, the iTax online platform has made it simple and fast to file Nil returns. This guide will provide a step-by-step breakdown of how to complete the process.
Who Should File Nil Returns?
You should file Nil returns if:
✔ You are an individual with no taxable income, such as a student or unemployed person.
✔ Your business was inactive during the financial year.
❌ Note: If you have an income, you must file the appropriate tax return instead of Nil returns.
Requirements for Filing Nil Returns
Before you begin, ensure you have:
✔ A KRA PIN (Your unique taxpayer identification number)
✔ Access to the iTax portal (Ensure your account is active. Reset your password if needed.)
✔ Internet access (Filing is done online)
Step-by-Step Guide to Filing Nil Returns
Step 1: Visit the KRA iTax Portal
🔗 Go to https://itax.kra.go.ke.
🖥 Enter your KRA PIN/User ID and click Continue to proceed to the login page.
Step 2: Log in to Your Account
🔑 Enter your password and complete the CAPTCHA challenge, then click Login.
💡 Tip: If you forgot your password, use the “Forgot Password” option to reset it.
Step 3: Access the Nil Return Filing Section
📂 On the dashboard, locate and click ‘Returns’ in the menu bar.
📑 Select ‘File Nil Return’ from the dropdown options.
Step 4: Choose the Tax Obligation
✅ You will be prompted to select your tax obligation:
✔ For individuals: Choose ‘Income Tax – Resident Individual’
✔ For businesses: Select the relevant business tax obligation
Click Next to proceed.
Step 5: Confirm Details and File the Return
✔ The system will generate a pre-filled form with your basic details.
✔ Verify the information, then tick the declaration box to confirm accuracy.
✔ Click Submit to file your Nil return.
Step 6: Download the Acknowledgement Receipt
📄 Once your return is successfully submitted, you will receive an Acknowledgement Receipt.
📥 Download and save the receipt for future reference. You can also print it if necessary.
✅ Congratulations! You have successfully filed your Nil tax return.
What Happens If You Don’t File Nil Returns?
Failing to file Nil returns attracts penalties and legal consequences, including:
❌ Ksh 2,000 fine for individuals and Ksh 20,000 fine for businesses.
❌ Accumulated tax debts over time.
❌ Ineligibility for a Tax Compliance Certificate (TCC).
❌ Restricted access to government services (e.g., tenders, job applications, and business licenses).
❌ Hindered credit and financial opportunities from banks and SACCOs.
Avoid penalties by filing your Nil returns on time!
Which App Can Be Used for Filing Returns in Kenya?
KRA has introduced the KRA M-Service App, which allows taxpayers to file their returns directly from their smartphones.
Features of the KRA M-Service App
📌 File tax returns (including Nil returns).
📌 Apply for a KRA PIN or retrieve a forgotten PIN.
📌 Request a Tax Compliance Certificate (TCC).
📌 Generate tax payment slips (PRNs).
📌 Check your taxpayer profile and obligations.
How to Use the KRA M-Service App to File Nil Returns
✔ Download the app from Google Play Store (Android) or Apple App Store (iOS).
✔ Log in using your KRA PIN and password.
✔ Navigate to the ‘Filing’ section and select ‘File Nil Return’.
✔ Confirm your details and submit the return.
✔ Download the acknowledgement receipt for your records.
💡 Benefits of using the App: It is fast, secure, and convenient.
Common Issues and Solutions
1. Forgot KRA PIN or Password?
✅ Use the ‘Forgot Password’ option on the iTax portal and follow the recovery steps.
2. Error While Submitting the Return?
✅ Ensure you’ve selected the correct tax obligation.
✅ If issues persist, contact KRA customer support or visit the nearest KRA office.
Conclusion
Filing Nil tax returns in Kenya is quick and easy using the iTax portal or KRA M-Service App. It ensures you remain compliant with tax laws and avoid penalties. Follow this step-by-step guide to complete the process in just a few minutes.
For further assistance, visit KRA’s official website or contact their support team.
📌 Stay compliant and avoid penalties—File your Nil returns today!
