Filing NIL (Non-Individual Limited) returns in Kenya refers to submitting a tax return when you have no taxable income or when you’re exempt from filing a tax return due to specific circumstances. Here’s a general guide on how to file NIL returns in Kenya:
- Access iTax Portal: Visit the Kenya Revenue Authority (KRA) iTax portal at https://itax.kra.go.ke/. Log in using your KRA PIN and password. If you don’t have an account, you’ll need to register first.
- Navigate to Returns Menu: Once logged in, navigate to the “Returns” menu on the iTax dashboard.
- Select Tax Obligation: under the Returns menu, select the tax obligation for which you want to file a NIL return. This could be VAT, Income Tax, or any other relevant tax category.
- Initiate New Return: After selecting the tax obligation, click on “File Return” or a similar option to initiate a new return.
- Choose Return Type: Choose the return type as “Original” or “Amended” based on your situation. For NIL returns, you typically select “Original.”
- Enter Nil Details: Fill in the required details on the return form. Since you’re filing a NIL return, you will enter zero (0) as the taxable amount or any other applicable fields indicating no income or transactions subject to tax.
- Submit the Return: Review the information you’ve entered to ensure accuracy and completeness. Once satisfied, submit the return electronically through the iTax portal.
- Confirmation and Acknowledgment: After submitting the return, you should receive a confirmation or acknowledgment message on the iTax portal indicating that your NIL return has been successfully filed.
- Keep Records: It’s essential to keep records of your filed NIL returns and any confirmation or acknowledgment receipts provided by the iTax system. This documentation may be required for future reference or audits.
- Compliance and Follow-Up: Even if you have filed NIL returns, ensure you stay compliant with any other tax obligations, such as filing annual returns or updating your tax profile as necessary.
It’s important to consult with a tax professional or refer to official guidelines from the Kenya Revenue Authority (KRA) for specific instructions tailored to your tax situation or any updates in the filing process.
