What are nil returns? Tax is paid from income earned during the taxable period. Therefore, if one doesn’t earn or falls in the unemployed bracket, they file nil returns on the iTax portal. Everyone in Kenya with a valid PIN must declare their income before June 30 of the following year. When a person is unemployed and doesn’t have any other source of income like rental, business, or consultancy, they are required to file nil returns. Failure to file nil returns can lead to penalties according to the Tax Procedures Act.
For instance, people that are late for filing individual returns are charged a penalty of Ksh.2,000, which was higher previously. That is, if they don’t file KRA nil returns.
The employed can utilize their P9 forms to file returns on the iTax platform. It is an easy and straightforward process that anyone can hack regardless of their IT background
Requirements for filing Nil returns
Before filing your KRA nil returns, you’ll need to access the iTax portal using your information and, if it is a company, the firm’s information, as stored in the KRA database. Hence, ascertain that you have the following details.
- Kenya Revenue Authority Personal Identification Number (PIN).
- Your iTax password
KRA PIN
Your KRA PIN is the most important on the portal as it is your identity. This way, you ought to ascertain that you remember it every time you log in to the iTax portal. If you don’t have a PIN, you can use the straightforward registration process on the iTax portal to get it in minutes.
iTax password
One cannot log in to the iTax platform without their password. However, if you have forgotten it, you can utilize the password recovery process to set up a new one. The system will send a password recovery link to your registered email with instructions on resetting your details.
Step by step guide on how to file Nil returns
If you are looking to file nil returns on iTax, you will be glad to know that the entire process doesn’t require any technical know-how and is swift and straightforward. You don’t have to endure long queues at Huduma Centers or visit a cybercafé to facilitate this process. You can do it at the comfort of your home or wherever you have an internet connection and access to the iTax portal.
1. Log in to iTax
One ought to utilize the official KRA website to access the iTax portal, and you can do so in the following way.
- Enter kra.go.ke on your preferred browser.
- Scroll down to online services and click file returns. The action will direct you to the iTax platform, whereby you will get an empty slot requiring you to fill in your PIN.
- The empty text box is on the left side of the page, and you can enter your PIN or user ID here to proceed. Click continue when done.
- The empty text box is on the left side of the page, and you can enter your PIN or user ID here to proceed. Click continue when done.
- You will get a prompt to enter your password and answer a numerical security stamp question, i.e. 80+50=??
- If you cannot recall your password, hit forgot password/unlock account below the login button.
- If successful, then the login action will lead you to your iTax page.
2. Select file Nil returns
This is the most integral section when filing nil returns, as it is where you will choose the nil option. And you can select the nil returns using the following steps.
- The opened page possesses various drop-down menus starting with home, registration, returns, debt and enforcement and many more from the left.
- Position your cursor on returns, the third option from the left to reveal the returns menu.
- Select the fourth option, from the drop-down menu.
- The type and taxpayer PIN section that appears on the following page are auto-filled. You will only be required to select the tax obligation.
3. Select income tax-resident individual Nil E-return
The action will lead you to a page requiring you to fill your PIN, wife’s PIN, and return period. Populate as necessary and then click the submit button.
Once you hit the submit button and everything is successful, you will receive a return receipt with an acknowledgement number. You can download this form and preserve it as evidence of filing. And that is all you need to file KRA returns online.
Can you file a zero income tax return?
Zero income essentially means that one didn’t make income in the year of tax. Therefore, the individual falls in the same category as people filing nil returns for the same period. This means that one can file a zero income tax return.
