How to file nil & PAYE Returns on KRA

To file nil returns, first, you need to know where you should do it. If you are on this page, you probably want to do it by yourself rather than having someone else do it for you.
The Kenya Revenue Authority is one of the state corporations in Kenya.

How to file nil returns on KRA

By knowing how to file nil returns, you will save your sh 100 or sh 200 that you will be charged if you let someone else do it for you.
I have earned from filing people’s nil returns (sh100) per person, because they are so easy to do. You just log in and press a few buttons starting from the menu items. It is so simple that you shouldn’t pay someone to do it for you. But you can if you want.
Watch the video below to learn how to do it. If you do not want to watch the video, you should read on.

Step 1: Visit the KRA Portal

You can file nil returns on the KRA itax portal. Visit the portal here.

Step 2: Log Into KRA iTax iPage Dashboard

Once you are at the itax page, you will be asked for log in credentials. Enter your PIN and password and completed a simple math to prove you are not a robot.
If it has been a while, you may be asked to set a new password before you can proceed. Set a password you can remember. More on how to reset your password later in the post.
You can do many things on your portal.

Step 3: Hover over the Returns Menu

On the Returns Menu, hover to access a drop down menu, click File Nil Returns.
You will then select enil returns.
Enter the type of return, in this case Self. Other details will be populated automatically by the system.
Click Next to proceed to the next step.

Step 5: Fill the Income Tax – Resident Individual Nil e-Return form

In this step, you will be required to choose a return period. Each individual has a unique return period. Click on the Submit button to proceed to the next step.

Step 6: Optional Steps

Upon successful filing of returns, a receipt will be autogenerated, you can download and print it if you want.

Frequently Asked Questions about filing nil returns on KRA portal

I have no source of income, should I still file returns?

Yes, every PIN holder is obligated to file returns. Your choice as a person with no income is to file nil returns.

Must I visit a KRA office after filing online?

You do not need to do that. The acknowledgement receipt you receive is enough prove.

I registered for KRA this year, do I need to file returns?

Your Individual Income Tax Returns are due immediately after the end of each year i.e. 31st December.

What is KRA nil return?

This is an option for taxpayers that have no source of income: Business Income, Rental Income or Employment Income.

What is the penalty for not filing KRA returns?

It is Ksh 20,000 for companies.
There is also a fine for individuals that do not file. It used to be Ksh 1,000 but it has since been reviewed to Sh 2000.

Recap to filing nil returns

Here are the steps in a summary:

  • Go to KRA iTax Portal
  • Enter your KRA Pin & Password
  • Go to the Returns menu and select File Nil Returns
  • Select your type of taxation and tax obligation and then enter your KRA Pin (these are usually automatically entered, confirm)
  • Enter your details and the return period
  • Complete them and then submit
  • Download the acknowledgment receipt

That is detailed guide to filing nil returns. You can also watch the KRA video for further clarifications.

Filing PAYE (Pay As You Earn) returns online

  1. PAYE (Pay As You Earn) is a method of tax deduction from employees’ salaries or wages and it applies to all income from any office or employment.
  2. Log on to KRA itax portal from your browser
  3. Enter your KRA PIN, click Continue. Enter Password and Security Stamp (answer to arithmetic sum) and Click login
  4. Under the returns section, click on file returns then select Income Tax followed by the PAYE option.
  5. Click on the returns tab and then the last item ITR for employment income
  6. Fill in the sections marked with a red asterisk (*) on Section A.
  7. Then in section T, only two sections are necessary section 1.1 and 2.5
  8. Move on to Section F and fill out your Total Employment Income.
  9. Click on the section M tab and check that taxable salary, tax payable on taxable salary and tax deducted salary tally the information reflected on your P9 form.
  10. Next in Section Q, fill in the tax paid in advance if applicable. This is the last section requiring information to fill in the return section. Once completed, click submit.
  11. If successful, a tab will appear on your screen with the text, “return slip generated’. You can then click on the download returns slip to get your slip, which you can then send to yourself via email or print.

How to reset KRA Password

  1. Open your browser and log in to the KRA iTax portal here – itax.kra.go.ke.
  2. Click on the button that reads “Enter PIN/User ID”
  3. Scroll down until you locate the “Forgot Password/Unlock Account” option and click on it.
  4. A new window appears with your PIN and security stamp. Answer the simple question provided. If you want different math (captcha), you can refresh by clicking on the arrows.
  5. Click on submit and you will get a confirmation message that your reset credentials have been sent to your email. Click back.
  6. Open your email on a new tab or a different device and check for an email from admin.itax2.
  7. Switch back to the iTax portal and enter your pin and the new password which has to be typed as it is. You can also copy the password directly from the email and paste it on the KRA iTax portal.
  8. A new window opens where you enter the old pin, which is password for resetting that was emailed to you. Type it and enter your new password. You will be required to type the new password twice.
  9. Accept the terms and policy guidelines before clicking submit.
  10. Your iTax portal should then open automatically, otherwise just log in with the password you just created.