KRA scraps nil returns for non-income individuals

NAIROBI, Kenya, Apr 19 – The Kenya Revenue Authority (KRA) has scrapped mandatory Nil Returns and introduced a new “PIN with No Obligation” (PWO) category, marking a shift in Kenya’s tax compliance framework.

The move is expected to ease the burden on non-earning Kenyans, including students and individuals without taxable income, who were previously required to file annual Nil Returns.

KRA said enhancements to its iTax system now allow both resident and non-resident individuals to register for a PIN without attaching tax obligations, provided they are not engaged in income-generating activities.

“iTax has been enhanced to enable individual taxpayers to generate a PIN with No Obligation,” the authority said.

“This is an initiative aimed at enhancing the integrity of the taxpayer register for individuals not engaged in taxable activities.”

Under the new framework, holders of a PIN with No Obligation will not be required to file annual returns, eliminating penalties associated with non-filing for this category.

However, KRA noted that compliance requirements will automatically apply once such individuals begin earning taxable income.

The reform is expected to streamline tax administration and improve the accuracy of the taxpayer register while lowering compliance barriers for individuals outside the tax net.

Applicants will be required to register through the iTax portal using a valid national identification card, with the system guiding users through the updated application process.