Filing Nil Returns for Students in Kenya

As a student in Kenya, you might think that the world of taxes doesn’t apply to you just yet. After all, you’re probably not earning an income. However, you’d be surprised to know that if you have a KRA PIN, you are required by law to file annual tax returns, even if you earned no income. In this case, you’ll be filing what’s called a “nil return.” In this friendly guide, we’ll walk you through the process of filing nil returns as a student.

Understanding Nil Returns

First things first, let’s define what a nil return is. A nil return is a tax return you file if you didn’t earn any income during a specific tax year. This might be the case if you’re a full-time student and didn’t have a job or run a business during that year. Filing a nil return keeps you compliant with Kenya Revenue Authority (KRA) regulations and ensures you avoid any penalties for non-compliance.

Step-by-Step Guide to Filing Nil Returns as a Student

Let’s break down the process of filing nil returns on the KRA iTax portal.

Step 1: Accessing the KRA iTax Portal

Your journey starts by visiting the KRA iTax portal. Open your browser and type in this URL: https://itax.kra.go.ke.

Step 2: Logging into Your iTax Account

Once you’re on the iTax portal, you’ll need to log in to your account. Enter your KRA PIN and password, followed by the answer to the arithmetic sum provided for security purposes, then click “Login.”

Step 3: Navigating to the Returns Menu

After logging in, locate the “Returns” option in the menu at the top of the page. Hover your cursor over it and select “File Nil Return” from the dropdown menu.

Step 4: Filing Your Nil Returns

On the “File Nil Return” page, fill in the required details. Select the tax obligation as “Income Tax – Resident Individual” and fill in the return period. After you’ve filled in these details, click on the “Submit” button.

Step 5: Confirmation and Receipt Download

Once you’ve submitted your nil return, the system will generate an acknowledgment receipt. You can download this receipt for your records.

Conclusion

As a student, you’re at the beginning of your journey into financial independence, and learning about tax obligations is a significant part of that journey. Even if you’re not earning an income yet, filing nil returns is a simple but essential task to keep you in good standing with KRA. So, make a habit of it, and when you start earning an income, transitioning to filing regular tax returns will be a breeze. Remember, staying tax compliant is not just about avoiding penalties; it’s about being a responsible citizen. Happy filing!

FAQs

Can I file a nil return myself?

Yes, absolutely! Filing a nil return is a simple process that you can do yourself through the Kenya Revenue Authority’s iTax portal. You’ll need your KRA PIN and password to log in. Once logged in, navigate to the “Returns” menu, select “File Nil Return,” fill in the necessary details, and submit. Remember to download the e-Receipt for your records once you’ve successfully submitted your nil return.

Which form is required for filing a nil return?

When filing a nil return, you don’t need a specific form like the P9 form used for income tax returns. The process is done entirely online via the iTax portal, and it’s straightforward. After logging in, you just select “File Nil Return” from the “Returns” menu, and the system will guide you through the necessary steps.

Who is required to file a nil return?

Any individual who has a KRA PIN is required to file a tax return each year, even if they earned no income. This means students, unemployed individuals, and people who didn’t earn any taxable income during the financial year need to file nil returns. By doing so, they’re informing KRA that they didn’t have any taxable income for that year. It’s an essential part of maintaining tax compliance and avoiding penalties.



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