This AVIQ Podcast episode aims to help you in Understanding PIN Registration and Tax Compliance in Kenya. A conversation between Beatrice Njeri, Certified Public Accountant (Kenya) & Partner at ushuru.co.ke and Wangechi Kanyeki.
What is a PIN, and why do you need it?
A PIN, or Personal Identification Number, is a unique number issued to you by the Kenya Revenue Authority (KRA). It helps you deduct and pay taxes to the government.
Why is it important? These days, you need a PIN for employment, opening a bank account, buying property like land, or purchasing a car. That’s why having a PIN is essential.
Who is eligible to file tax returns?
If you have a PIN, you need to file a return, either every year or monthly, depending on your status.
If you are a natural person, you must file your return every year. If you are a company, you must comply with the law and file your returns according to your tax obligations. There are deadlines for this, including the upcoming annual return deadline of 30th June.
What if I have never filed returns? What are the consequences?
It sounds like you may have gotten your PIN back in college, but never actually filed a return. Here’s what you need to do: you must update your returns from the date you registered your PIN. You cannot file for 2023 without having filed for 2022. Everything must be done chronologically.
The downside is that late filing attracts penalties. For a company, the penalty is KSh 20,000; for an individual, it is KSh 2,000 per year.
Is there any relief available?
The good news is that KRA occasionally offers waivers covering all penalties that accrued.
Can I get help with my taxes?
Certainly! At ushuru.co.ke, we remove that burden from you. We ensure you file a correct and accurate return so that KRA does not come back to you in the future.
Final thoughts
To conclude, it is important to have a PIN and to remain compliant once you have one. Staying compliant ensures you don’t run into problems with KRA, which could make your business operations difficult. You want to focus on growing your business, not fighting with the revenue authority.
If you are unable to register a pin or change pin details on your own, it is always good to speak to an expert. Get in touch, and we will be able to help you.
Disclaimer: Any advice in this publication is limited to the conclusions specifically set forth herein and is based on the completeness and accuracy of the stated facts, assumptions and/or representations included. In rendering our advice, we may consider legal authorities that are subject to change, retroactively and/or prospectively, and any such changes could affect the validity of our advice. We will not update our advice for subsequent changes or modifications to the law and regulations, or to the judicial and administrative interpretations thereof.
