This archive report was first published on 14 November 2019.
Kenya's Tax Obligations: A Guide for Citizens and Residents ¶
As of November 14, 2019, every Kenyan citizen with a Personal Identification Number (PIN) is required to file their tax returns annually, with penalties for late filing and payment.
According to the Kenya Revenue Authority (KRA), individuals who possess a PIN and fail to file their return are culpable to an interest accruing penalty for every year for which the return is not filed.
Any Kenyan citizen or individual/entity within Kenya who is employed, has a business, has rental income, wishes to apply for a Higher Education Loan, or intends to perform any transaction within Kenya is required to have a KRA PIN.
Non-resident Kenyans or non-Kenyan residents within or outside Kenya can also apply for a PIN using the requirements provided in the law. Foreign companies can also apply for a PIN as a subsidiary.
Kenyan citizens with a KRA PIN are required to file an Individual Income Tax Return annually, on or before June 30th of every year. This submission of returns is done online on the KRA iTAX platform.
It is essential to note that if you do not have an income, it is advisable to file a NIL return. Income Tax can be paid by M-PESA or through the banks listed on the iTax Online Payment Platform.
Value Added Tax (VAT) is charged on the supply of taxable goods or services made or provided in Kenya and on importation of taxable goods or services into Kenya, payable on or before the 20th of the following month.
Pay As You Earn (PAYE) is a method of collecting tax from individuals in gainful employment. Employers are required to register for this obligation, and deduct PAYE from their employees' salaries and wages at the prevailing rates and remit the same to KRA on or before the ninth of the following month.
