How to File Nil Returns In Kenya

Filing Nil Returns in Kenya: A Comprehensive Guide for Businesses & Individuals

As a business owner in Kenya, it's crucial to keep track of your tax obligations and comply with the tax laws. One of the requirements for all businesses is to file tax returns with the Kenya Revenue Authority (KRA) every year. Even if your business didn't make any profits during the tax year, you still need to file a return to avoid penalties and fines. In this article, we'll discuss the steps involved in filing nil returns in Kenya.

What are Nil Returns?

Nil returns refer to tax returns filed by businesses that didn't make any taxable income during the tax year. Nil returns are necessary for compliance purposes, even if a business didn't conduct any business activities during the tax year or made no taxable profits. Failing to file a nil return could attract penalties and fines from KRA.

Steps to File Nil Returns

The following are the steps involved in filing nil returns in Kenya:

Step 1: Register for KRA PIN

If you're a new business owner, you need to register for a Personal Identification Number (PIN) with KRA. A PIN is a unique identification number used by KRA to track tax compliance. You can register for a PIN online via KRA's iTax platform or visit any KRA office near you.

Step 2: Login to iTax

Once you have a PIN, you need to log in to KRA's iTax platform to file your nil returns. If you don't have an iTax account, you can register for one on the platform.

Step 3: Select Nil Return Form

After logging in to iTax, select the 'Returns' tab and then click on 'File Nil Return.' The system will direct you to a page where you'll select the applicable tax obligation. Choose the relevant tax obligation for your business, such as Income Tax, VAT, or PAYE.

Step 4: Fill in the Nil Return Form

Once you select the relevant tax obligation, the system will generate a nil return form. Fill in the form with the required details, such as the business name, PIN, and tax obligation. Ensure that you complete all the fields on the form before submitting.

Step 5: Submit the Nil Return Form

After filling in the nil return form, review the details to ensure that they're accurate. Once you're satisfied with the information provided, submit the form to KRA. The system will generate an acknowledgment receipt that confirms that you've filed your nil return.

Conclusion

Filing nil returns is a crucial compliance requirement for businesses in Kenya, even if they didn't make any taxable profits during the tax year. By following the steps outlined in this article, business owners can file their nil returns accurately and avoid penalties and fines from KRA. Remember to file your nil returns on time to avoid unnecessary penalties and interest charges.

Also Learn : How to File Individual & Company Returns in Kenya