In Kenya, to file nil returns refers to a tax return that has no taxable income or tax liability to be reported. If you are a registered taxpayer in Kenya and you have not earned any income during a particular tax period, you are required to file a nil return with the Kenya Revenue Authority (KRA).
Here are the steps to file a nil return in Kenya:
- Go to the KRA iTax website at https://itax.kra.go.ke/KRA-Portal/ and log in to your account using your PIN and password.
- Once logged in, click on the “Returns” menu and select “File Nil Returns.”
- Select the tax obligation for which you want to file a nil return.
- Enter the relevant tax period for which you want to file a nil return.
- Fill in the return form with your basic information, including your name, PIN, and tax obligations.
- Declare that you have no taxable income or tax liability by selecting the appropriate option.
- Submit the nil return form.
Once you have submitted your nil return, you will receive a confirmation message from KRA. It is important to note that failure to file a nil return may result in penalties from KRA. Therefore, it is important to file a nil return even if you have no taxable income or tax liability.
Penalty For Not Filing Nil Returns In Kenya
In Kenya, failure to file nil returns can result in penalties from the Kenya Revenue Authority (KRA). The penalty for not filing a nil return depends on the length of time that has elapsed since the deadline for filing the return.
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If you fail to file a nil return within the deadline, KRA may impose a penalty of Kshs. 20,000 or 5% of the tax due, whichever is higher. If the penalty is not paid within the specified time, additional interest may be charged to the penalty.
It is important to note that even if you have no taxable income or tax liability, you are required to file a nil return to avoid penalties. Therefore, it is recommended that you file your nil return before the deadline to avoid any penalties or interest charges.
If you have any questions or concerns about filing a nil return or about your tax obligations in Kenya, you may contact the KRA customer service center for assistance.
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