KRA PIN & Tax Obligations
The Kenya Revenue Authority (KRA) was created by an Act of Parliament (Chapter 469 of the laws of Kenya) in July 1995 to collect, administer and account for revenue on behalf of the Government of Kenya (GoK).
A PIN is a Personal Identification Number used while doing business with Kenya Revenue Authority, other Government agencies and service providers.
Do I need a PIN?
You are required to have a PIN if you expect to earn any income from Kenya. This applies to both Residents and Non- residents.
Some transactions will also require you to have a PIN. These transactions include but are not limited to;
- Registration of title, stamping of instruments by the Commissioner of Lands, and payment of Land Rent.
- Approval of plans, payment of water deposits, application for a business permit, payment of Land Rent by Local Authorities.
- Registration of Motor Vehicles, and licensing under the Traffic Act (Cap 403) by the Registrar of motor Vehicles.
- Registration of Business Names and Companies by the Registrars of Business names and companies.
- Trade licensing by the Ministry of Commerce.
- Application for Value Added Tax registration.
- Underwriting policies by Insurance Companies.
- To facilitate importation of goods, Customs clearing and forwarding at the offices of Commissioner of Customs and Excise.
- Payment of Deposits for power connections at Kenya Power and Lightning Co. Ltd.
- To facilitate all contracts for supply of goods and services to all Government Ministries and Public bodies.
How do I register for a PIN?
Pin Registration is an online process done via iTax system.
*PIN registration requirements available on the KRA website
Every person with a Personal Identification Number is required to file and pay their taxes via iTax on or before the due date.
Kenyans in the diaspora are encouraged to visit any home missions abroad to receive filing support or any other assistance related to their PIN.
Some of the tax obligations include;
Income Tax is chargeable upon all the income of a person, whether resident or non – resident accrued or derived in Kenya
This tax obligation is MANDATORY.
Individuals – 30th June of the following year
Corporates – Last day of the 6 month following the end of their account period
Payments are however done by the last day of the 4th month following the end of the accounting period
Value Added Tax (VAT)
VAT is charged on supply of taxable goods or services made or provided in Kenya and on importation of taxable goods or services into Kenya
On or before 20th of the following month
Pay As You Earn (PAYE)
PAYE is a method of collecting tax from individuals in gainful employment. Employers are required to register for this obligation, and deduct PAYE from their employees’ salaries and wages at the prevailing rates and remit the same to KRA
On or before the 9th of the following month
Residential Rental Income Tax
This is tax payable by resident persons on residential rental income accrued or derived in Kenya where the rent income is between Kshs.288,000 (Kshs. 24,000 per month) and Kshs.15 million per annum.
On or before the 20th of the following month
Other tax obligations include;
- Withholding Tax
- Capital Gains Tax
- Excise Duty
- Turnover Tax
- Advance Tax