Payment of taxes is one of the most universally disliked aspects of adult life. For many, the idea of handing over a portion of their hard-earned money to the government feels like an unwelcome burden, made worse by the fact that taxes are an inevitable and permanent part of our financial responsibilities. This narrative is often fueled by the perception that navigating tax procedures is confusing and overwhelming, leaving many in fear of facing penalties for unpaid taxes. At the heart of this frustration, however, lies a common thread: a lack of understanding of the tax process itself.

In today’s world, understanding taxes is essential. It is important to start taking an interest in the key aspects of tax compliance as early as 18 years old. This article aims to guide you on this informative journey, addressing common concerns that many citizens share.

Understanding Eligibility and PIN Registration

Any adult in the Republic of Kenya (18 years and above) is eligible to pay taxes. This process begins with applying for a KRA Personal Identification Number (PIN). A PIN is a unique number that the Kenya Revenue Authority (KRA) uses to identify a taxpayer and is required when doing any business, seeking employment, or even for importation.

There are two types of applicants for PINs: individuals and entities such as companies, trusts, clubs, and similar organizations. An individual's PIN starts with the code "A0…" while for entities such as companies, it begins with "P0…"

A PIN is required for activities such as applying for a Higher Education Loans Board (HELB) loan, opening a bank account, engaging in business, and selling land, among other transactions.

The purpose for which you apply for a PIN determines your tax obligations. Based on factors like your income and the nature of your application, the PIN will guide the selection of the appropriate tax categories and dictate how you will need to remit your taxes.

How to Register for a PIN: A Step-by-Step Guide

Once you have identified the need for a PIN, understanding the registration process becomes straightforward. Registration is an online process done on iTax, and it is free of charge! Residents receive their PIN certificate instantly after completing the online registration. Non-residents, however, receive an acknowledgment receipt that can be used to follow up on the registration process status.

Step-by-step guides for both individual and non-individual registration are available on the KRA website.

Support and Assistance:

For additional information and resources, visit the official KRA website, where you will find comprehensive guides and FAQs to assist you. KRA also provides video tutorials on the official YouTube page, designed to help you navigate various tax processes with ease. If you need personalized support, our Contact Centre is available to assist you via phone at 0711 099 999 or 020 4 999 999 and by email at callcentre@kra.go.ke. Alternatively, you can visit the nearest KRA office, where staff are ready to provide in-person assistance and answer any questions you may have.

With this information at your disposal, the responsibility now lies with you to become more vigilant in following these processes, which ultimately contribute towards the country’s economic development.

By Esther Muthoka