How To File KRA Nil Returns In 2020


How To File KRA Nil Returns In 2020

It is important that if you have an active KRA PIN on iTax, you should ensure that you file your KRA Returns each and every year between 1st January to 30th June. These dates are very important to note down is you want to part of the tax compliant Kenyans.

The Tax Procedures Act states that if a return is not submitted by the respective due date a penalty will be imposed.

Thoughts on Filing Nil Returns


Below are some thoughts from my team and I on whether or not you should be filing nil returns.

With the tax filing season here with us, many people tend to complain of either the taxes being too high or just being too much. When it comes to 2018 tax returns, KRA reported that there were over 3.6 million people who filed which was 400,000 more than had filed the previous year. This number includes individuals who filed nil returns.

It is the duty of every Kenyan who makes an income either through employment, business in selling of goods or services rendered, to pay their rightful share of taxes. It may not seem like it, but paying taxes is important for the facilitation of public services to you and others within the Kenyan borders.

We would like to shed some light on the filing of nil returns, which means that the individual filing did not make any income within the tax year (in this case, January to December of 2019). It is important to note that having low income does not mean that your income is nil. Further, having a tax exemption certificate does not mean that one should file a nil return. It is fundamental to note that a nil return should only be filed if an individual has not received ANY income within the period.

In certain aspects the government does have bilateral agreements with some international organisations where the organisation is exempt from tax and the general assumption is that employees that are Kenyan citizens working in these organisations are also exempt from tax. This is not the case. Unless one has specifically been exempted from paying tax then individuals should file annual returns and pay any tax liability due.

It is important to note that it is an offence in law to file a nil return when in essesnce you did earn an income. The Tax Procedures Act provides that it is an offence for a taxpayer to:

a) Omit from their return an amount which should have been included

b) Make any incorrect statement which affects his or her liability to tax

c) Deliberately default on any obligation imposed under a tax law

If an individual is found guilty of any of the above offences, he/ she is liable to a fine not exceeding KShs 10M or double the tax evaded, whichever is higher. Also one could be sent to jail for a term not exceeding 10 years.

Taxpayers should therefore be careful while filing nil returns lest you are found guilty of fraud and/ or tax evasion.

Requirements Needed For Filing KRA Nil Returns


To be able to file your KRA Nil Returns on iTax, you need to ensure that you have with you KRA PIN Number and KRA iTax Password. Before we get started on the various steps, you need to ensure that you have the following two items with you:

  • Your KRA PIN Number
  • Your KRA iTax Password

For you to able to file your KRA Nil Returns on KRA iTax Web Portal, you need to ensure that you have with you two key requirements i.e KRA PIN Number and KRA iTax Password. 


Step by Step Guide on How to File KRA Nil Returns


Step 1: Visit KRA iTax Portal Using https://itax.kra.go.ke/KRA-Portal/

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

Step 2: Log Into KRA iTax iPage Dashboard

Once you have successfully logged into your iTax account (iPage) you should see the following as shown above. In your iTax account, you can do a variety of tasks online. Our main focus for this blog post will be on KRA Returns.

Step 3: Click On File Nil Return Tab

On your iTax account top panel menu, Click on Returns and then File Nil Return. 

Step 4: Select The Nil e-Return

In the type section, select Self. It will populate your KRA PIN Number and in the Tax Obligation – Income Tax Resident. Click Next to proceed.

Step 5: Fill The Income Tax – Resident Individual Nil e-Return Form

In this part, you select the return period. Since 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 to automatically auto-fills by itself. Click on the submit button to proceed.

Step 6: Download KRA Nil Returns Receipt

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

Step 7: 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 Returns for the year 2019.

And there are the 7 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 tell a friend to file KRA Nil Returns early this year before 30th June 2020.

Remember the earlier you start filing your KRA 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 the late filing of individual returns. This is stipulated in the 2018 Finance Act.


What You Need To Know About Filing Nil Returns


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 acknowledgment 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.
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