It is mandatory for anyone in Kenya with a KRA PIN to file income tax returns. You should file KRA iTax NIL returns if your salary is below the taxable minimum of Ksh. 24,000, not employed or did not pay any income tax in the year that just ended (January 1st, 2020 to December 31st, 2020). This includes college and university students which required a KRA PIN certificate to apply for HELB.
A NIL return indicates to the Kenya Revenue Authority that you either did not pay taxes in the year or are below the taxable income limit.
The deadline for filing income tax is June 2021. You can file your tax anywhere from January to June 30th every year.
If you fail to file your income tax before the deadline, you will incur a penalty of Ksh. 2,000, which was revised upwards from Ksh. 1,000, per year.
The penalty also incurs an interest of 1% per month until fully paid.
This means it will be difficult for you to get a tax clearance certificate from KRA if you will not pay all the penalties incurred over the years you failed to file your returns.
How to File KRA NIL Returns Online 2021
Here is how students, unemployed individuals, and anyone below the minimum tax bracket can file the KRA NIL returns.