This archive report was first published on 7 November 2019.
As of November 7, 2019, the Kenya Revenue Authority (KRA) requires individuals with a Personal Identification Number (PIN) to file their income tax returns. This includes students, employees, business owners, and those with rental income.
A KRA PIN is used for various transactions, including tax returns, and is essential for individuals who wish to apply for a Higher Education Loans Board (HELB) loan. The tax returns are filed for the year ended, and individuals can file their returns anytime between January 1st and June 30th of the following year.
Kenya operates on a self-assessment tax regime, where individuals or businesses voluntarily declare their income and settle any tax liability. If an individual did not accrue any income, they can file a nil return.
Failure to file and pay taxes on time attracts penalties. For late filing, the penalty is 5% of the tax due or KES 20,000, whichever is higher. For late payments, individuals pay 5% of the tax due and a late payment interest of 1% per month on the unpaid tax until the tax is paid in full.
The KRA PIN has various uses, including registration of title, stamping of instruments, approval of plans, and payment of land rent. It is also required for registration of motor vehicles, licensing under the Traffic Act, and application for value-added tax registration.
Submission of income tax returns is an online process done via the iTax portal. Even if an individual has no income to declare, they are required to file a nil return.
