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KRA: What is a Nil Return and when should you file one? Do you have an active KRA PIN and you don’t have have a source of income (unemployed)? Check out our article on How To File KRA Nil Returns using iTax Portal quickly and easily today. Filing of KRA Nil Returns is allowed for taxpayers who do not have any source of income. When I talk of source of income, it means that the taxpayer does not have Business Income, Rental Income or Employment Income, thus the need to file KRA Nil Returns on iTax Portal.
In this article, I am going to share with you the step by step guide that you need to follow in order to file your KRA Nil Returns using KRA iTax Portal. By the end of this article, you will have learnt How To File KRA Returns if you you have a KRA PIN and not in employment. Avoid the last minute rush and penalties by filing your Nil KRA Returns before the 30th June 2021 deadline.
What’s a nil return?
A nil income tax return is filed to show the Income Tax Department that you fall below the taxable income and therefore did not pay taxes during the year.
Be Warned : Well, failure 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.
When should I file a nil return?
To show income tax return as proof of income. You are just starting out and your total income falls below the taxable limit, but would like to keep a record. There are several instances where income tax serves as a proof, say when you are applying for visa or while getting your passport made.
You were filing your income tax returns for many years and fell into the ‘below taxable limit’ this year. This is to continue maintaining a record and also preventative measure in the event of a scrutiny from the Income Tax Department.
Requirements Needed For Filing KRA Nil Returns
To be able to file your KRA Nil Returns on iTax, you need to ensure that you have with you KRA PIN Number and KRA iTax Password. Before we get started on the various steps, you need to ensure that you have the following two items with you:
- Your KRA PIN Number
- Your KRA iTax Password
For you to able to file your KRA Nil Returns on KRA iTax Web Portal, you need to ensure that you have with you two key requirements i.e KRA PIN Number and KRA iTax Password. We are going to look at each of these KRA Nil Returns requirements in brief details below.
How to file KRA Nil Returns
As long as you are a Kenyan citizen above the age of 18years, you are supposed to file your annual returns. In the case where you have no source of income, you will be required to file them as nil instead of using a p9 form, which is simple. Below are the steps on how to file nil Returns:
- Go to KRA iTax Portal
- Enter your KRA Pin and Password
- Go to the Returns menu and select File Nil Returns
- Select your type of taxation and tax obligation and then enter your KRA Pin
- Enter your details and the return period
- Complete them and then submit
- Download the acknowledgment receipt
What You Need To Know About Filing Nil Returns
Are you unemployed but have a PIN?
If yes, remember all PIN holders must file returns even when you have No source of income.
Do you need to visit a KRA office once you file online?
No, you do not: once you file your returns you will receive an acknowledgement receipt in your email. You can download a copy from your online profile.
Do you need to file your returns if you registered for a KRA PIN this year?
Your Individual Income Tax Returns are due immediately after the end of each year i.e. 31st December. If you got your KRA PIN this year, you will start filing Nil Returns from next year. So, be sharp and spare a few minutes of your time in a day and file your KRA Nil Returns today.