Nil Tax Returns

How to file nil tax returns in Kenya

Filing tax returns is part of your social duty as a resident of a country or a non-resident earning income in a certain country. However, that doesn’t mean that it’s something people look forward to. For many, they would never file their tax returns even if they were nil tax returns if there were no consequences.

Filing your tax returns in time is not only a social duty but also it shows that you’re responsible and in some cases, it can be used to determine whether you’re eligible for certain services such as visa application. Therefore, you should be vigilant about filing your tax returns.

This exercise is mandatory and is done every year. In Kenya, tax paying citizens should file their tax returns from the previous financial year by 30th June regardless of whether you have earned a taxable income or not.

If you haven’t earned an income for the financial year or the income is below the taxable amount but you have a KRA PIN certificate, you’re required to file nil returns. Nil returns are a type of tax returns declaring that no taxes have been paid by the individual or business in the previous financial year.

This informs the government that you didn’t earn a taxable income, preventing you from incurring penalties for failing to file tax returns.

This is the simplest type of tax returns to file as you don’t need any forms or information to complete the process. It can be done in a few minutes. Therefore, there’s no excuse to not do it.

Failing to file nil tax returns attracts a fine of Ksh 20,000 for companies and Ksh 2,000 for individuals. To avoid incurring penalties make sure that you file your returns on time. Here’s a guide on how to file nil tax returns in Kenya.

  • Visit the iTax website and log into your account
  • Click on Returns and choose File NIL returns on the drop-down menu
  • Select Self in the Type section
  • Select Income Tax – Resident in the Tax Obligation section
  • Click Next
  • Fill the correct income tax period then click Submit
  • Click Ok on the message that pops up
  • Click Download Returns receipt to generate a receipt
  • Save the receipt as it’s proof that you filed your tax returns