Registering a business, importing goods, buying and selling land, or registration of motor vehicles or VAT applications

are some of the many transactions that require you to have a KRA PIN by law in Kenya.

 

So what is a KRA PIN?

A KRA PIN is a Personal Identification Number used by an individual either Kenyan Resident or Non-Resident while doing business with Kenya Revenue Authority (KRA), other Government agencies, or service providers.

This unique identifier helps you when filing tax returns and paying taxes as a registered taxpayer.

 

 

Who should have a PIN?

Once you obtain the minimum age of 18 years old in Kenya, you are required to have a KRA PIN if you;

 

  • Are employed
  • Are running a business
  • Have rental income
  • Wish to apply for a HELB Loan
  • Are buying or selling land
  • Want to perform any of the transactions listed by the Kenya Revenue Authority (KRA)

 

When can I use my KRA PIN?

The law requires you to use your Kenya Revenue Authority (KRA) PIN as a taxpayer in Kenya when:

  • Applying for Value Added Tax (VAT) registration.
  • Registering Business Names and Companies by the Registrars of Business names and companies.
  • Registering and licensing Motor Vehicles under the Traffic Act (Cap 403) by the Registrar of Motor Vehicles.
  • Registering for a Kenya Driver's Licence.
  • Registering land Title deeds, stamping of instruments by the Commissioner of Lands, and payment of Land Rent.
  • Getting approval of plans, payment of water deposits, application for business permits, and payment of Land Rent by Local Authorities.
  • Paying Deposits for power connections at Kenya Power and Lighting Co. Ltd.
  • Acquiring Trade licensing by the Ministry of Commerce.

A Trade license is a formal authorization required to do business, issued by the county government. 

  • Facilitating the importation of goods, Customs clearing, and forwarding at the offices of the Commissioner of Customs and Excise.
  • Facilitating all contracts for the supply of goods and services to all Government Ministries and Public bodies.
  • Underwriting policies by Insurance Companies.
  • Applying for a Kenyan passport.
  • Applying for most jobs in Kenya.

 

How much does it cost to apply for a KRA PIN?

It will only cost you a few minutes of your time, and the carrier charges for using internet bundles or WiFi to access the KRA iTax portal

and your email since you need to register online when applying for a KRA PIN.

 

What Requirements do I need before applying for a KRA PIN?

To apply for a taxpayer's PIN as a Kenyan you need to have attained the minimum age of 18 years. Non-Kenyan residents can register as

taxpayers too. The requirement for a KRA PIN registration is:

    • A Kenyan ID Number for a Kenyan Citizen.
    • Alien Individual Number (Alien ID Number) for Non-Kenyan Residents.

 

How do I Register for a KRA PIN on the iTax Portal?

You can apply for a Kenya Revenue Authority PIN registration on the KRA iTax Portal using the following steps:

    • Click "New PIN Registration" on the iTax portal homepage under Do you want to apply for a PIN? to start your registration.

 

    • Select one option between Individual or Non-individual Taxpayer Type depending on what type of taxpayer you are.

    • Pick whether you will use the Online Form or Upload Form Mode of Registration on the e-Registration form as shown below

and click next to continue.

    • The iTax PIN registration form will open next, based on your taxpayer type and mode of registration. The type of details to

be added in the PIN registration form are different for Individual and Non-individual taxpayer types.

 

    • As an Individual taxpayer applying for a KRA PIN using an online form, you have to fill in the 4 broad categories of information

as detailed below; including whether you are a Kenyan, Non-Kenyan Resident, or Non-Kenyan Non-Resident on this step.

        • Basic information
        • Tax Obligation Details
        • Source of Income Details
        • Agent Details

 

    • For Non-individual taxpayers, the PIN registration form consists of 4 broad categories listed below:
        •  
        • Basic Information
        • Tax Obligation
        • Director Associates
        • Agent Details

 

    • You need to fill in all the mandatory details on the e-Registration form and add the required supporting documents before

you click submit to finish the KRA iTax PIN registration form.

 

    • When submitting the application form, you will see a pop-up to confirm the e-mail address you mentioned in the PIN

registration form is correct. Confirm by clicking ‘OKAY’ if the email ID is correct.

 

    • On successful submission of the iTAX PIN registration form, your iTax KRA PIN will be displayed immediately on the iTax page

and a copy sent to your email address for you to download and print or use online as an attached document. 

 

    • Visit your email address inbox to get your iTax PIN and the password that was auto-generated by the KRA iTax Portal.

 

    • Go to the KRA iTax Portal and log in using the iTax PIN and password you have received in your email inbox.

 

    • After you log into your iTax portal, you will be re-directed password change page to update your password.

 

    • When updating your password, you need to create a security question that will help you to recover your iTax profile

in case you forget your login credentials next time.

 

Which are the various KRA Tax Obligations?

While applying for the KRA PIN, you will be required to select the correct tax obligation applicable to you and your correct tax

responsibility will be set with the corresponding date at the same time. Your tax obligation as an individual is either as:

 

  • Income Tax Resident which Applies To All Kenyan Residents.

 

  • Income Tax Non-Resident which applies To All Non-Residents of Kenya.

 

  • Value Added Tax (VAT) applies to suppliers of taxable goods and services.

 

  • Pay As You Earn (PAYE) which applies to employers.

 

What Tax Obligations do I have as a Registered Taxpayer in Kenya?

KRA Tax Obligation is the responsibility of tax that an individual has to account for and pay applicable taxes including:

  • Accurately filing KRA tax returns before the set deadlines.
  • Paying penalties and interests where applicable.
  • Making timely tax payments.
  • Producing records with full information in respect of tax liability to the Tax Commissioner (When Required).

Visit the iTax portal to apply for a KRA PIN today and join various online shopping websites or Just AirDuka it to sell your products

 

Since you now know how to apply for a KRA PIN online, connect with us to learn more business and finance growth tips in Kenya.