If you have a KRA PIN but did not have any active source of income during the previous year (January 1 to December 31), the law still requires you to file a tax return. This is known as a Nil Return. Failing to file by the June 30th deadline attracts an automatic KES 2,000 penalty.
Requirements for Filing a Nil Return
- Your KRA PIN
- Your iTax Portal Password
- A smartphone or computer with internet access
Step-by-Step Instructions
Step 1: Log in to iTax
Go to the official KRA iTax portal at itax.kra.go.ke. Enter your KRA PIN, select "Continue", and enter your password. Solve the arithmetic security question and log in.
Step 2: Navigate to Returns
Once logged in, look at the red menu bar at the top. Hover over the "Returns" menu item, and click on "File Nil Return" from the dropdown menu.
Step 3: Select Tax Obligation
Under the "Tax Obligation" dropdown, select "Income Tax - Resident Individual". Click the "Next" button at the bottom right corner.
Step 4: Confirm Return Period
The dates for the return period will automatically populate (usually 01/01/YYYY to 31/12/YYYY for the previous year). Review these dates and click on the "Submit" button.
Step 5: Download Acknowledgement Receipt
A pop-up will appear asking if you are sure you want to file a Nil Return. Click "OK". You will be redirected to an acknowledgement page where you can download your e-Return Acknowledgment Receipt as proof of filing.
Common Mistakes to Avoid
- Filing Nil when you had income: KRA can cross-reference bank accounts and employers. If you had a salary, do not file a Nil return. File using a P9 form instead.
- Forgetting passwords: Make sure the email attached to your iTax is accessible. If you've lost access, you need to visit KRA or use a tax agent to change the email.
- Filing late: The deadline is strictly June 30th. Even if filing Nil, failing to do so on time attracts the KES 2,000 penalty.
Experiencing Issues Filing Your Nil Return?
Whether you forgot your password, the portal is throwing an error, or you need to clear accumulated penalties, Silver Sage Tax Solutions can help for as low as KES 500.
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