The Kenya Revenue Authority (KRA) has clarified that all working Kenyans must continue filing their annual tax returns based on the income they earned, even after the suspension of nil returns filing.
In a statement released on Wednesday, January 28, KRA explained that employed individuals are required to file their tax returns using their annual tax deduction card, commonly known as the P9 form.
The Authority emphasized that anyone who was employed at any point during the year must declare their income accordingly and should not attempt to file nil returns.
“Please note that you are required to file your tax return based on your income. If you were employed during the year, you should file your return using your P9 form,” KRA stated.
To make the process easier, KRA advised taxpayers to use either the Excel upload option or the pre-populated Individual Tax Return (ITR) feature available on the iTax platform.
These options allow taxpayers to submit accurate information without having to manually enter all details from scratch.
For Kenyans who earn income from business activities, KRA urged them to ensure that their tax returns correctly reflect their actual business earnings and expenses.
The Authority stressed that all declared figures must match the invoices generated through the electronic Tax Invoice Management System (eTIMS).
“If you earned business income, make sure your return accurately reflects your real business invoices. Your return must comply with the validation of income and expenses as captured in your eTIMS invoices,” KRA added.
This clarification comes after concerns were raised by several taxpayers who reported difficulties while trying to file nil returns on the iTax system.
Some users claimed that recent changes on the platform had made it impossible to complete nil returns, causing confusion among unemployed and inactive PIN holders.
KRA Temporarily Halts Nil Returns Filing
Earlier this month, KRA announced the temporary suspension of nil returns filing for unemployed Kenyans until the end of March.
The move is part of a broader effort by the Authority to clean up its taxpayer records and improve compliance among KRA PIN holders.
Speaking to the press on Friday, January 23, KRA Deputy Commissioner Patience Njau explained that the suspension will help the Authority identify individuals who earn income but still declare nil returns.
According to Njau, KRA will use this period to review and validate data from various systems, including income tax records, withholding tax, eTIMS transactions, and customs data that may not have been properly declared.
“This year, our approach will be very different. We are focused on converting nil filers, non-filers, and zero payers into compliant taxpayers.
We have systems that allow us to monitor income from different sources such as withholding tax, eTIMS, customs, and other transactions,” Njau said.
She added that the temporary halt is meant to reduce the risk of taxpayers hiding income under nil returns.
“To avoid missing out on taxpayers who should be paying tax, we have suspended nil returns filing during this validation period. Between now and March 30, you will not be able to file your 2025 income tax return if it is a nil return,” she explained.
KRA has assured Kenyans that once the validation exercise is completed, further guidance will be issued on how affected taxpayers should proceed.
In the meantime, employed individuals and business owners are encouraged to file accurate returns that fully reflect their income and transactions.
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