Home » How to File KRA Nil Returns on iTax – A Detailed Guide

How to File KRA Nil Returns on iTax – A Detailed Guide

How to File KRA Nil Returns on iTax Online
Onuonga Reviews is reader-supported. When you buy through links on our site, we may earn an affiliate commission at no additional costs to you.

In this blog post, I am going to show you How To File KRA Nil Returns On iTax online today. The guide is quick and easy with a full illustration of the steps.

Every Kenyan, who has a valid KRA PIN is required to declare their annual income every year. Even without any taxable income, every Kenyan is required to file their taxes. In this event, one is required to file a nil return on the iTax portal.

What is KRA Nil Returns?

KRA Nil Returns applies to those who do not have a source of income sometimes referred to as the unemployed. Moreover, Source of income in the sense that the taxpayer does not have income from Rental, Business, or Employment. Every Kenyan with a valid PIN is required to declare annual income every year. Furthermore, This should be before 30th June of the following year.

  • If not employed and do not have an alternative source of income i.e Rental, Business, or Consultancy income you file nil returns.
  • If you have a KRA PIN, the law states that you should file a return.
  • You file a nil return if you have no income source.

Failure to do so as indicated in the Tax Procedures Act leads to penalties. Please be informed that the penalty is now Kshs. 2,000 for the late filing of individual returns. The 2018 Finance Act stipulates such legal provisions. Another key point is that If you are in employment, you need to file KRA Returns using your P9 Form.

Who Should File Nil Return?

Nil returns are filed by Kenyan citizens who are either unemployed (such as university students) or are employed but earn a salary below the country’s taxable income. Thus, University students who apply for HELB and KRA Pin should file nil returns. Furthermore, Employed Kenyan Citizens earning less than Ksh13,950 per month should file nil returns.

Also, companies that haven’t started making money from their activities are required to file nil returns. If you are not in employment, then you can proceed to file Nil Returns as outlined in the step by step guide in this blog post.

Requirements For Filing Nil Returns

To be able to file your Nil Returns on iTax, you need to ensure that you have some items. You need to ensure that you have the following two items with you before we get started on the various steps :

  • Your PIN Number
  • Your iTax Password

KRA PIN Number

KRA PIN Number is the most important requirement that you need to have with you. If by any chance you have forgotten or you don’t remember your KRA PIN, you can submit PIN Retrieval on the KRA website. At the same time, if you are looking for a new  PIN, you can get it for free by registering on the iTax website.

iTax Password

The next requirement that you need to have with you is your iTax Password. You will need the iTax Password to access your iTax Account. If you don’t know or have forgotten your iTax Password, you can check this article on How To Reset KRA iTax Password. Once you have requested a password reset, a new password will be emailed to you and you can use it to log into your iTax Account.

Additionally, You can only change or reset your iTax Password if the email used in iTax Portal is the same that you currently have. If you don’t remember or need to change your KRA Email Address, you can do a PIN Check on the iTAX website.

Video Tutorial

You can save time by watching this 4-minute video tutorial on How to File KRA Nil Returns on iTax – A Detailed Guide

If you don’t like the video or need more instructions, then continue reading.

Step by Step Guide on How to File KRA Nil Returns

Time needed: 12 minutes.

Consequently, now you have everything with you i.e your KRA PIN number and iTax Password, we can start the process of How To File KRA Nil Returns on iTax. 

  1. Visit KRA iTax Portal

    Using your KRA PIN number and iTax Password, Log into your iTax account at https://itax.kra.go.ke/KRA-Portal

  2. Enter KRA PIN

    Put in your user ID or KRA Pin. After you insert the KRA Pin, click on the continue button below it.

  3. Input KRA Passsword

    An empty tab will appear where you will input your password and then proceed to do simple arithmetic (known as the Security stamp) below that and click enter.

  4. Click On File Nil Return Tab 

    Once you have accessed the website, you will see a red menu bar. On it click the ‘Returns’ icon and a drop-down will appear; select the File Nil Returns Option.

  5. Select Income Tax Resident

    On the new page, at the ‘Type’ tab fill ‘self’, on the taxpayer, pin insert your KRA pin and on the ‘Tax Obligation’ option insert ‘Income tax resident Individual.’ then click ‘Submit’.

  6. Set The Tax Return Period

    In this part, you select the return period. For example, if we are filing KRA Nil Returns for the previous year 2019, our return period will start from 01/01/2019 to 31/12/2019. The return period automatically auto-fills by itself. Click on the submit button to proceed.

  7. Download KRA Nil Returns Receipt

    Upon successful submission of your KRA Nil Returns, a return receipt will be generated with an acknowledgement number. Download the returns receipt and print a copy of it. 

  8. Print e-Return Acknowledgement Receipt

    The last and final step will involve printing the KRA e-Return Acknowledgement Receipt that you downloaded. This is a final indication that you have successfully filed the KRA Nil Return for that year.

Conclusion

And there are the 8 core and important steps on How To File KRA Nil Returns on iTax. Share with all your family, friends, and relatives. Tell a friend to file Nil Returns early every year before 30th June

Remember the earlier you start filing your Nil Returns the better. Avoid last-minute rush that will lead to a penalty of Kshs. 2,000/= for not filing your KRA Nil Returns. There are no extensions for that period. Please be informed that the penalty is now Kshs. 2,000 for late filing of individual returns. This is stipulated in the 2018 Finance Act.

Frequently Asked Questions(FAQ) on How To File KRA Nil Returns On iTax

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. 

The President, in April 2020, directed that those who are earning less than Ksh24,000 be exempted from Pay as You Earn (PAYE) in April 2020. Does that mean I am exempt?

That directive will apply when one is filing their returns in 2021 for the 2020 period. For this year’s filing, we’ll go with the Ksh13,950 mark and below for nil returns.

What if I was unemployed for some months but got a job that put me in the taxpaying bracket from mid-year.

You will still file for the months where you became applicable for taxes. You will be required to file with your income for the months your income amount became applicable for tax.

What are the penalties for not filing on time?

You will be fined Ksh2,000 per year for not filing before the June 30, deadline. For companies, it is Ksh10,000 a year. The earlier you file, the better.

How can I contact KRA?

POSTAL ADDRESS
Times Tower, Haile Selassie Avenue,
P.O.Box 48240 – 00100 GPO Nairobi Tel: 020-310300, 020-281000 Fax: 341342

CALL CENTER DETAILS
Tel:020-4999999,020-4998000
Cell:0711-099999

Email: callcentre@kra.go.ke

Final Thoughts

I hope you enjoyed reading How to File KRA Nil Returns. Sharing is Caring- spread the word to your friends and family.

Don’t forget to Subscribe to My Youtube Channel for Video Tutorials. You can also check out My Facebook Page, Twitter Handle, and Instagram Page for more Updates and Social engagements. Thank you for flying with Onuonga Reviews.

Leave a Reply