The Kenya Revenue Authority (KRA) requires all citizens with a KRA Personal Identification Number (PIN) to file their returns, including those who earn below the taxable amount – that is, a Nil Return.
In April 2018, the taxman introduced new rules governing the filing of Nil Returns in order to reduce cases of tax evaders who file Nil Returns.
The new rules require Nil Return filers to explicitly declare that they do not have any other source of income through the online iTax platform.
For those within the income tax bracket can quickly and easily file their returns on the iTax portal by following the steps outlined below.
1. On the KRA website, select the iTax button and proceed to enter both your KRA PIN and the password that was provided when you registered with KRA, in case you have never changed the password. Answer the simple Mathematics sum right under the Password box and click on “Log in”.
2. Once on the portal, locate the “Returns” tab or click on the “e-Return” icon on the “e-Returns” pop-up on the home page.
3. Under the “Tax Obligation” box, proceed to select the “Income Tax- Resident Individual” option and click on “Next”.
4. You will then be required to download an excel sheet titled “IT1 Resident Individual Form”. This is the form that you will edit and later upload when fully completed.
5. Upon due completion of the form, updating the “Period From” and “Period To” fields and click on the button to agree to the terms then submit the return. The portal will either generate a receipt for the received returns or an error message in case of unsuccessful submission.
“Non-filers for cases of taxpayers with gainful economic activities are in contravention of the law.
“Taxpayers are further advised to observe timelines and accurate declarations in their returns besides making full payments of any taxes due,” a past notice by KRA Commissioner for Domestic Taxes Benson Korongo read in part.
In case you have lost your password or PIN, you can easily reset it to avoid paying the penalties if you fail to file the returns by June 30.