Taxman sets new rule for Nil Returns

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Taxman sets new rule for Nil Returns

The Kenya Revenue Authority (KRA) has released a new digital form that makes it easier to track down people trying to evade taxes by filing ‘Nil’ income tax returns. The new online form requires filers of nil income tax returns to explicitly declare that they do not have any other source of income. The new development is meant to help curb tax evasion.

The Kenyan law requires that anyone with a personal identification number (PIN) to file a return annually including a nil return. A ‘Nil’ income tax returns indicate that the taxpayer falls below the taxable income bracket and therefore does not qualify to pay taxes during the reported year.

As a tax payer, this will also prevent you from being penalised for late filing. The penalty fee, that took effect from last year, is Ksh 20,000 up from ksh 1,000 in 2015.

KRA Commissioner for Domestic Taxes Benson Korongo said in a notice “The taxpayers filing genuine Nil income tax returns are hereby notified that they can now successfully do so through the iTax system,”  and added “Taxpayers are further advised to observe timelines and accurate declarations in their returns besides making full payments of any taxes due.”

The filing of 2017 tax returns started on January 1 and is expected to close on June 30 2018.

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