KRA PIN Registration in Kenya
What is a PIN?
It is a personal identification number that identifies you for purposes of transacting business with the Kenya Revenue Authority, other Government agencies, and service providers. The most popular transactions that require KRA Pin Registration include:
- Registration of title, stamping of instruments by the Commissioner of Lands, and payment of Land Rent.
- Approval of plans, payment of water deposits, application for a business permit, and payment of Land Rent by Local Authorities.
- Registration of Motor Vehicles, and licensing under the Traffic Act (Cap 403) by the Registrar of Motor Vehicles.
- Registration of Business Names and Companies by the Registrars of Business names and companies.
- Trade licensing by the Ministry of Commerce.
Application for Value Added Tax registration.
Underwriting policies by Insurance Companies.
- To facilitate the importation of goods, Customs clearing, and forwarding at the offices of the Commissioner of Customs and Excise.
- Payment of Deposits for power connections at Kenya Power and Lightning Co. Ltd.
- To facilitate all contracts for the supply of goods and services to all Government Ministries and Public bodies.
Requirements for KRA Pin Registration of Residents
- National ID/Alien ID Card details.
- Employers’ PIN details for those who are employed.
- Business registration certificate details for those in business.
Non-Kenyan, Non-Resident Investor (Residing outside Kenya)
- Letter of Introduction from the tax agent.
- PIN of a registered tax agent.
- Valid Tax Compliance Certificate of the tax agent.
- Original and copy of valid passport.
- Investments above 10 million should get a letter from ken invest.
- Investments below 10 million should get a class G permit from immigration.
- Documentary proof of investment (Certificate of Incorporation/Compliance, CR12*, project proposal, Endorsement by Kenya Investment Authority (KenInvest), etc.).
Why you Should File Returns after KRA Pin Registration
It is a legal requirement according to section 52B of the Income Tax Act cap 470. The law provides that every person with taxable income is required to file their returns. Kenya operates on a self-assessment tax regime where every person is required to assess himself or herself and declare the income earned during the year and pay any taxes due. Filing of returns and payment of taxes, therefore, ensures that one is compliant with Kenyan tax laws.
For employment income purposes, filing returns enable Kenya Revenue Authority to reconcile the tax deducted from employees’ income under the Pay As You Earn (PAYE) system and the declarations made by employees at the end of the year. Return filing, therefore, enhances the accountability of taxes deducted from employees.