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

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How to File Kra Itax Tax Returns in Kenya

How to file tax returns in Kenya

Filing returns in Kenya can be a daunting task, especially for individuals who have never done it before. However, with the right information and guidance, filing returns in Kenya can be a seamless process. This article provides a step-by-step guide on how to file returns in Kenya.

Step 1: Register for a KRA PIN

Before you can file your returns in Kenya, you need to have a KRA PIN. A KRA PIN is a unique identification number that is issued by the Kenya Revenue Authority (KRA). You can register for a KRA PIN online or by visiting a KRA service center. To register for a KRA PIN online, you will need to visit the KRA iTax portal and follow the registration process. You will be required to provide your personal details, such as your name, ID number, and email address. Once you have registered for a KRA PIN, you will receive an email with your PIN and instructions on how to activate your iTax account.

Step 2: Collect your P9 form

A P9 form is a document that shows your total income and tax deductions for the year. Your employer is responsible for issuing you with a P9 form at the end of the tax year. You can also download your P9 form from the KRA iTax portal if you have an activated iTax account. Your P9 form will provide you with the information you need to complete your tax returns.

Step 3: Log in to your iTax account

To file your returns in Kenya, you need to have an activated iTax account. You can log in to your iTax account using your KRA PIN and password. Once you have logged in to your iTax account, you will be able to access the tax returns form.

Step 4: Complete the tax returns form

The tax returns form is a document that requires you to provide information about your income, tax deductions, and other relevant details. You will need to provide accurate information to avoid penalties for submitting false information. You can save your progress as you complete the form and come back to it later if you need to.

Step 5: Submit your tax returns form

Once you have completed the tax returns form, you need to submit it. You will be required to provide your digital signature, which you can generate using your KRA PIN and password. After you have submitted your tax returns form, you will receive an acknowledgment receipt. You can download and print the receipt for your records.

Step 6: Pay any outstanding taxes

If you have any outstanding taxes, you need to pay them before the deadline. You can pay your taxes using various payment methods, including M-PESA, bank transfer, or by visiting a KRA service center. To pay your taxes through M-PESA, you need to follow the following steps:

1. Go to the M-PESA menu and select Lipa Na M-PESA.
2. Select Pay Bill and enter the KRA Pay Bill number (572572).
3. Enter your KRA PIN as the account number.
4. Enter the amount you want to pay.
5. Enter your M-PESA PIN and confirm the transaction.

Once you have paid your taxes, you need to log in to your iTax account and confirm the payment. You will receive an acknowledgment receipt for your payment.

Conclusion

In conclusion, filing returns in Kenya is a straightforward process if you have the right information and guidance. You need to have a KRA PIN, collect your P9 form, log in to your iTax account, complete the tax returns form, submit your tax returns form, and pay any outstanding taxes before the deadline. You can also seek professional assistance if you need help filing your returns. By following these steps, you can avoid penalties and stay compliant with filing deadlines.

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