The taxation period is always mulled by Kenyans rushing to the nearest cyber café to hurriedly file their returns before being slapped a hefty fine by Kenya Revenue Authority. Every Kenyan with a valid PIN is required to register their earnings by June 30th of the following year.
The term "zero income" refers to the fact that no money was earned during the tax year. As a result, the person falls into the same group as persons who filed no returns for the same time period. This means that you can file a tax return with no income.
With anyone above the age of 18 eligible to have a KRA pin, it’s quite easy to get a significant majority of people trying to file KRA nil returns every year.
Let’s start first by exploring what are NIL returns
The income earned during the taxable period is used to pay the tax. As a result, if a person does not make money or is unemployed, they must file nil returns on the iTax portal.
What do you need to file KRA Nil Returns?
You must have two vital requirements in order to file KRA Nil Returns on the KRA iTax Web Portal:
KRA PIN Number
Your KRA pin number is the most vital requirement when filing KRA Nil returns. If you have never had a KRA pin, you can visit the KRA e-registration platform to quickly get one.
KRA iTax Password
To access your KRA iTax Account, you'll need your Password. In case you’ve forgotten it, select forgotten password from the iTax login page. You'll be asked the security question you used when you initially signedup. New log-in credentials will be sent to your registered email address after you have successfully submitted the information.
How to file KRA nil returns: A step-by-step guide
Step 1: Visit https://itax.kra.go.ke/
Step 2: Log in to your Itax account by inserting valid details (KRA pin and password)
Step 3: Answer the security question provided
If you log in successfully, you'll be taken to your iTax account page.
Step 4: Select returns and choose file nil returns from the drop-down menu that appears
Step 5: Select your tax obligation. (The tax type and taxpayer pin are automatically filled)
Step 6 : Finally, choose a time frame for the return.
For 2022 your return period will run from January 1, 2021, to December 31, 2021, because you are reporting KRA Nil Returns for the preceding year 2021. The return period will automatically fill in for you.
Step 7 : Submit
Step 8 : After submission, you’ll receive an acknowledgment receipt to show you’re tax compliant.
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