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How to file Nil Returns to Avoid a 20,000 Ksh Penalty by Taxman

Baba Hakeem by Baba Hakeem
9th July 2020
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Submit your tax returns or pay a penalty of 10,000 or 5% of Tax due

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It is mandatory for all Kenyans to file tax returns annually as long as they are 18 years of age and have acquired a KRA PIN number. The unemployed and/or students are required to file nil returns.

Filling a Nil Tax Return enables the Kenya Revenue Authority to identify all taxpayers that fall below the taxable income. Nil Tax returns are primarily filed by the unemployed and tertiary level students. Individuals who are paid by wages may also file a nil return.

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Initially, failure to file returns used to attract a penalty of 1000 shillings, this was reviewed in 2017 to 20,000 shillings. This hefty penalty applies to every Kenyan that fails to file a return but has a PIN number. Filing tax return should be done before 30th June every year.

How to file a Nil Return

1. Log into the iTax Portal using your PIN and Password.

Nil Returns2. Once the Portal opens and you are on the Dashboard.  Click on the Returns tab. Click the last option on the drop-down menu.

This process should take you less than two minutes. But it will save you 20,000 shillings in penalties.

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