Are you looking for the steps to File Nil Returns on iTax? Learn and get to know the procedure of How To File Nil KRA Returns Using KRA Portal.
For those who have an active KRA PIN Number but no source of income, they are required to file their Nil KRA Returns on KRA Portal on or before the elapse of the 30th June KRA Tax Returns Deadline as set by Kenya Revenue Authority (KRA). Why you might be asking? This is due to the fact that with a valid KRA PIN Number is required by law to file their returns (Section 52B – Income Tax Act Cap. 470). Failure to which a penalty applies.
Knowing the steps and procedure to follow in Filing Nil KRA Returns is an important aspect for any Kenyan Resident or Non Resident with KRA PIN that is on iTax. No one wants to get penalized for not filing KRA Returns on iTax before the deadline elapses. That’s why it is quite important to learn and know How To File Nil KRA Returns Using KRA Portal or simply put it as Nil KRA Returns filing on iTax Portal.
There has always been a challenge amongst the millions of Kenyans with KRA PIN Numbers but are not employed or do not have have a source of income on what type of KRA Return they are supposed to file on KRA Portal. Well, the answer is Nil KRA Returns. So as long as you have a KRA PIN ensuring that it is already on iTax, then you need to be filing Nil Returns if you have no income source.
Nil KRA Returns is basically a type of KRA Return that is filed and submitted by individuals who have an active KRA PIN but have no source of income. Kenya Revenue Authority (KRA) classifies sources of income into 3 categories; i.e. Business Income, Employment Income or Rental Income. So, if you have a KRA PIN with no income derived from the above 3 categories, then you are required to File your Nil KRA Returns on KRA Portal.
Filing of Nil KRA Returns by individuals in Kenya is much easier if you have with you the most important requirements that are need first before accessing KRA Portal account. You need to ensure that you have with you the KRA Portal login credentials that comprises of the KRA PIN Number and KRA Password. Once you have the two credentials with you, then you can easily follow the step by step procedure that is outlined in this article on How To File Nil KRA Returns Using KRA Portal.
Requirements Needed To File Nil KRA Returns
To be able to file Nil KRA Returns using KRA Portal, there are a set of requirements that you need to ensure that you have with you. This includes; KRA PIN Number and KRA Password. These two play an important role as you will need them in order to login to KRA Portal so as to be able to file Nil KRA Returns on KRA Portal.
Just as I have mentioned above, to be able to file Nil KRA Returns using KRA Portal, you are going to need your KRA PIN Number and KRA Password as these two form the most important KRA Portal login credentials. Let’s look at each of these key requirements briefly below.
KRA PIN Number
KRA PIN Number is the most important requirement that you need to have with you. If by any chance you have forgotten or you don’t remember your KRA PIN, you can submit KRA PIN Retrieval order online here at Cyber.co.ke Portal and our team of experts will be able to assist with with PIN Retrieval request.
At the same time, if you are looking for a new KRA PIN, you can get it here in 3 minutes by submitting your KRA PIN Registration order today at Cyber.co.ke Portal. Your KRA PIN Certificate will be sent to your Email Address once the Request for PIN Registration has been done and processed from our Support team.
The next requirement that you need to have with you is your KRA Password. You will need the KRA Password to access your KRA Portal Account. If you don’t know or have forgotten your KRA Password, you can check our article on How To Reset KRA Password. Once you have requested for password reset, a new password will be emailed to you and you can use it to log into your KRA Portal Account.
You can only change or reset your KRA Password if the email used in KRA iTax Portal is the same as the one you currently have. If you don’t remember or need to change your KRA Email Address, you can submit KRA PIN Change of Email Address order online at Cyber.co.ke Portal and have your Email Address changed so as to enable you Reset KRA Password.
How To File Nil KRA Returns Using KRA Portal
Step 1: Visit KRA Portal
The first step in the process of How To File Nil KRA Returns that you need to take is to ensure visit the KRA Portal. You can click on https://itax.kra.go.ke that will take you to the KRA Portal. Note that the link will open in a new browser tab.
Step 2: Enter KRA PIN Number
In this step, you will need to enter your KRA PIN Number. If you have forgotten your KRA PIN, you can request for KRA PIN Retrieval here at Cyber.co.ke Portal and your KRA PIN will be sent to your email address immediately. Once you have entered your KRA PIN, click on the “Continue” button to proceed to the next step.
Step 3: Enter KRA Password and Solve Arithmetic Question (Security Stamp)
In this step, you will be required to enter your KRA Password and also solve the arithmetic question (security stamp). If you have forgotten your KRA Password or iTax Password ou can check our article on How To Reset KRA Password. A new password will be sent to your email and you can use it to login. Once you have entered your iTax Password, click on the “Login” button to access your KRA Portal Account.
Step 4: KRA Portal Account Dashboard
Once you have entered the correct KRA Password and solved the arithmetic question (security stamp) as illustrated in Step 3 above, you will be logged in successfully and be able to see and access your KRA Portal Account Dashboard. Since we are filing Nil KRA Returns on KRA Portal or simply iTax, we proceed to step 5.
Step 5: Click On The Returns Menu Tab Followed By File KRA Nil Return
In this step, on the iTax Account menu list, navigate to “Returns” menu tab and click on “File Nil KRA Return” from the drop down menu list. This is as illustrated in the screenshot below.
Step 6: Select Tax Obligation As Income Tax Resident Individual
In the Nil KRA Returns Form, under the Tax Obligation part, select Income Tax Resident Individual since we are filing Nil KRA Returns for Individuals who have KRA PIN Numbers but no source of Income. The other two fields i.e Type and Taxpayer are automatically pre-filled by the system.
Step 7: Fill In The Income Tax Resident Individual Nil KRA Returns Form
In this step, on the KRA Returns Form, you need to select the date for the Return Period From part. Since we are in 2021, we are filing KRA Returns Online for 2020. So the Return Period From date will be 01/01/2020 and the Return Period To date will be automatically pre-filled by the system to 31/12/2020.
Once you have entered the KRA Returns dates 01/01/2020 – 31/12/2020 on the Nil KRA Returns form, click on the “Submit” button to submit the Nil KRA Return to Kenya Revenue Authority (KRA). A pop up notification from itax.kra.go.ke will appear as shown below:
Step 8: Download Nil KRA Returns Acknowledgement Receipt
In this last step, you will need to download the Nil KRA Returns Acknowledgement Receipt that has been generated by the iTax System (KRA Portal) successfully. This is a final confirming that your Nil KRA Returns have been successfully submitted to Kenya Revenue Authority (KRA). An Acknowledgement Receipt Number will also be generated for that Nil KRA Return that we have just filed on KRA Portal.
After following all the above steps of Filing Nil KRA Returns using iTax, you will need to download and save the Nil KRA Returns Acknowledgement Receipt from KRA Portal. Below is a screenshot of the same confirming that the taxpayer has successfully filed his or her Nil KRA Returns using KRA Portal.
To sum up the whole process of Filing Nil KRA Returns on iTax, you need to ensure that you have with you the iTax login credentials as explained earlier that comprises of both the KRA PIN Number and KRA Password. Once you have the same, then you can follow the steps as outlined in this Nil KRA REturns Filing article. One thing that you need to keep in mind is that you should file your Nil KRA Returns on or before the set out KRA Returns deadline reaches.
Matthews Ohotto is a holder of Second Class Honours Upper Division Degree in Business Information Technology (Bachelor of Business Information Technology – BBIT) from Jomo Kenyatta University of Agriculture and Technology (JKUAT). He is the Founder of both Cyber.co.ke Portal (an online portal that focuses on offering better KRA Services to Kenyans both locally and globally) and Cyber.co.ke Blog.