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How to File KRA NIL returns using Itax

iTax, launched in 2011, was developed to provide Kenyan citizens with a platform to manage their taxes electronically and to assist the Kenya Revenue Authority (KRA) in tax administration. It has emerged as a significant achievement for the government in terms of revenue collection and digital infrastructure development.

One of the capabilities provided by the infrastructure is the ability for citizens to file their returns electronically. In the past, this process was entirely manual. Citizens had to fill out paper tax forms, available at KRA offices and designated banks, and then physically submit them to KRA offices or collection points. KRA staff would manually input the data from these forms into their systems for processing, a method that was both time-consuming and prone to errors. Tax payments were made through bank deposits or at KRA offices, with taxpayers receiving physical receipts as proof of payment. Additionally, both taxpayers and KRA had to maintain physical records of all tax documents, necessitating substantial storage space and complicating information retrieval. Communication between KRA and individuals, such as notices of assessment or reminders, was conducted through postal mail.

Most individuals, whether residents or non-residents, are registered for income taxes. You can file a return or a nil return. In this article, we are focusing on nil returns for individuals declaring no income in the past financial year.

To file nil returns now, all you need to do is log on to your iTax account using your KRA PIN as your user ID and the designated password. If you forget your password, you can easily reset it using your email address. Can you imagine how difficult it would have been to manage this through postal mail?

After logging in, hover over the “Returns” menu and select “File Nil Return.” A form will open as shown below. Here, you will choose the type of tax you are obligated to file. After making your selection, click “Next.”

On the next page, you will have the option to select the date (choose the date of registration if this is your first time filing). If you have filed before, the details will be automatically updated. Then Click Submit

After submitting, it means you have successfully filed the nil return for the selected year. You can download the receipt and choose to complete a survey or cancel.

To file for the next year, repeat the steps: hover over “Returns,” select “File Nil Return,” and choose the next year (usually auto-populated as shown below).

Repeat these steps for each year you are declaring no income.

Why can’t I file Nil returns for the current year?

KRA returns are completed after the end of the year, meaning you can only declare income for a concluded year.

What are Fines and Penalties?

As a citizen registered with KRA, you must file returns for the concluded year. Returns must be submitted by the deadline of 30th June the following year. Failure to meet this deadline incurs penalties of Ksh 2000 for individuals and Ksh 20000 for companies. Therefore, it is advisable to file returns before the deadline.


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