Your KRA PIN can be suspended for not filing tax returns or for not paying tax that is in arrears. When your PIN has been suspended, you are not in a position to file tax returns, pay taxes or log onto your iTax profile, until such a time when your PIN has been re-activated.
One other impact of having your PIN suspended is that you cannot be issued with a tax compliance certificate or have a withholding tax certificate issued in your favour. Where such a withholding tax certificate cannot be issued, your client would ordinarily require you to re-activate your PIN first before paying you, as a hefty penalty would apply to them should they pay you your gross fees, without deducting applicable withholding tax.
One of the most common reasons why a PIN would be suspended is that you have a VAT obligation for which you have not been filing necessary returns. Where this is the case, a monthly penalty of at least KES 10,000 would apply; which you would need to settle or have waived before your PIN can be re-activated.