This archive report was first published on 14 November 2019.
As of November 14, 2019, the Kenya Revenue Authority (KRA) requires all Kenyan citizens with a Personal Identification Number (PIN) to file their tax returns annually. Failure to comply with this requirement attracts interest-accruing penalties for each year the return is not filed.
Who needs a KRA PIN? Any Kenyan citizen or individual/entity within Kenya who is employed, has a business, receives rental income, or intends to perform any transaction within Kenya is eligible to apply for a PIN. Non-resident Kenyans and non-Kenyan residents within or outside Kenya can also apply using the provided requirements. Foreign companies can apply as subsidiaries.
The KRA PIN is essential for various transactions, including land deals, building construction, trade licenses, motor vehicle registrations, and bank account openings. Tax obligations for Kenyans with a KRA PIN include income tax, value-added tax (VAT), and pay-as-you-earn (PAYE) tax.
Income tax is applicable to both residents and non-residents, with individual income tax required for anyone drawing wages from organizations registered in Kenya. Kenyans in the diaspora are encouraged to visit home missions abroad for filing support. Those without income are advised to file a NIL return, especially students and senior citizens.
Value-added tax (VAT) is charged on taxable goods or services made or provided in Kenya, payable on or before the 20th of the following month. PAYE is a method of collecting tax from individuals in gainful employment, with employers required to register and deduct PAYE from employees' salaries and wages. Residential rental income tax is payable by resident persons on income between Kshs.144,000 and Kshs.10 million per annum.
