Nil income tax returns help the taxman identify all taxpayers that fall below the taxable income or are unemployed and earning no salary that includes university students.
Through KRA’s now-famous platform dubbed iTax, you can file your returns from the comfort of your home. It is mandatory to file tax returns annually if you have acquired your KRA PIN number. That also applies to students and unemployed Kenyans who are required to file nil returns without fail.
With the deadline for filing KRA tax returns fast approaching, every taxpayer in Kenya is mandated to submit their returns to the agency.
Requirements for filing KRA Returns
- Your KRA PIN Read
- Your iTax account Read
Filing PAYE (Pay As You Earn) Returns Online
- Log on to https://itax.kra.go.ke/KRA-Portal/ from your browser
- Enter your KRA PIN, click Continue. Enter Password and Security Stamp (answer to arithmetic sum) and Click login
- Under the returns section, click on file returns then select Income Tax followed by the PAYE option.
- Click on the returns tab and then the last item ITR for employment income
- Fill in the sections marked with a red asterisk (*) on Section A
- Then in section T, only two sections are necessary section 1.1 and 2.5
- Move on to Section F and fill out your Total Employment Income.
- Click on the section M tab and check that taxable salary, tax payable on taxable salary, and tax deducted salary tally the information reflected on your P9 form
- Next in Section Q, fill in the tax paid in advance if applicable. This is the last section requiring information to fill in the return section. Once completed, click submit.
- If successful, a tab will appear on your screen with the text, “return slip generated’. You can then click on the download returns slip to get your slip, which you can then send to yourself via email or print.
How to File Nil Returns Online
Nil income tax returns help the taxman identify all taxpayers that fall below the taxable income or are unemployed and earning no salary that includes university students. The minimum taxable income in Kenya is Kshs. 12,000.
- Type ‘iTax’ on your Google search tax and click on the KRA iTax website itax.kra.go.ke
- Put in your user ID or KRA Pin. After you insert the KRA Pin, click on the continue button below it
- 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.
- 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.
- 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.’ then click ‘Submit
- If the process is successful, an e-return acknowledgment receipt will appear. Click download the receipt and you will be all done. You can print or email yourself the receipt for safekeeping.
How to reset KRA Password
- Open your browser and log in to the KRA iTax portal here – itax.kra.go.ke.
- Click on the button that reads “Enter PIN/User ID”
- Scroll down until you locate the “Forgot Password/Unlock Account” option and click on it.
- A new window appears with your pin and security stamp. Answer the simple question provided. If you want different math (captcha), you can refresh by clicking on the two provided arrows.
- Click on submit and you will get a confirmation message that your reset credentials have been sent to your email. Click on the back button
- Open your email (you can add another tab) and check for an email from admin.itax2. It will have a message, “Your KRA Web Portal account password has been reset. Your login id and new password are:”
- Switch back to the iTax portal and enter your pin and the new password which must be typed as it is. You can also copy the password directly from the email and paste it on the KRA iTax portal.
- A new window opens where you enter the old pin. This is the reset password mailed to you. Type it and enter a new password that you will be using
- Type the new password twice. Choose a security question and provide your answer. You will not require it after this.
- Accept the terms and policy guidelines and then click submit.
- Your iTax portal opens automatically, and in case it takes you to the log-in window, just log in with the password you have created.
How to file (with withholding certificates)
This is for individuals who are professionals/ consultants and have received a withholding income tax certificate.
You will be required to prepare a schedule of income chargeable to tax and allowable expenses. Those with audited return can use the forms to fill their returns
- Log in to the iTax portal
- Update your professional details in iTax
- Click on the file returns box and click on the links to download the return form
- Fill the excel/ ODS Return form
- Upload the Excel/ODS Return form using the browse button
- Fill in the information required including the type of return and the return period.
- Section A – Answer Yes when asked if you have any income other than employment income
- From your schedule of account, you can input all the relevant details of incoming profits and losses.
- The different types of expenses have been highlighted; it is for you to input where relevant
- In the next sheet capture the liabilities and assets of your business
- Once completed filling all the relevant fields, upload the file.
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