What a nil return is and who should file one
A nil return is a declaration that you had no income for the period. It is most common for individuals with a KRA PIN who did not earn taxable income that year, for example students, the unemployed, or people whose PIN is dormant. Filing nil keeps your PIN active and compliant.
The key point is that having no income does not excuse you from filing. Every KRA PIN holder must file a return; if there was nothing to declare, that return is a nil return. Skipping it entirely is what triggers a penalty, not the absence of income.
A business that actually traded should not file nil just to save time. If you made sales, you must declare them. Filing nil to hide income is a serious risk; nil is only for genuine no-income periods.
How to file a nil return on iTax, step by step
For a genuine no-income period, this is the quick process.
- 1
Step 1: Log in to iTax
Go to itax.kra.go.ke and log in with your KRA PIN and password. Reset the password if needed using your registered email.
- 2
Step 2: Open Returns and choose File Nil Return
Under the Returns menu, select File Nil Return rather than File Return. This is the dedicated option for declaring no income.
- 3
Step 3: Select the obligation and period
Choose the income tax obligation (usually resident individual) and the tax period (the year you are filing for).
- 4
Step 4: Submit
Confirm and submit. iTax processes the nil return immediately and issues an acknowledgement receipt.
- 5
Step 5: Save the acknowledgement
Download and keep the acknowledgement receipt as proof you filed for the period.
Nil return mistakes to avoid
Not filing at all
The biggest mistake is assuming no income means no obligation. You still file a nil return, and not filing attracts a penalty even with nothing to declare.
Filing nil when you actually earned
If you traded or earned income, filing nil to save effort is false declaration and a serious risk. Declare real income on a normal return.
Missing the 30 June deadline
Nil returns have the same deadline as the annual income tax return: 30 June. Late filing, even nil, attracts a penalty.
Confusing nil with not registered
A nil return keeps an active PIN compliant. It is not the same as having no PIN or deregistering. If you have a PIN, you file.
Forgetting it next year
If your situation continues (still no income), you file nil again next year. Filing once does not cover future periods.
A graduate keeps their PIN compliant
A recent graduate in Nairobi had a KRA PIN from a previous internship but no income last year. She assumed that with no income there was nothing to do.
She learned that not filing at all would attract a penalty, even though she earned nothing. She logged in to iTax, chose File Nil Return, selected the year, and submitted in under two minutes.
Her PIN stayed compliant, she avoided the penalty, and she kept the acknowledgement as proof. When she later started a business, her record was clean.
Trading without eTIMS-compliant tax invoices risks KRA penalties, blocked VAT input claims for your customers, and receipts a business buyer cannot expense.
Veira signs every sale to KRA eTIMS automatically, so each receipt is compliant the moment it prints, with no separate device to reconcile.
When you are trading, Veira keeps it real
A nil return is only for genuine no-income periods. The moment you start trading, you must declare real income, and that is where keeping accurate records matters. Veira generates eTIMS invoices and reconciled sales data on every sale, so when you move from nil to active, your figures are ready and correct.
If you run any kind of business, do not file nil to avoid work; file an accurate return from clean records. Veira makes that the easy path, from KES 2,999 a month.
Frequently asked questions
How do I file a nil return on KRA iTax?
Who should file a nil return?
What happens if I do not file a nil return?
When is the nil return deadline?
Can a business file a nil return?
Do I have to file nil every year?
A nil return takes two minutes and keeps your PIN compliant, so never skip filing just because you earned nothing. And the moment you start trading, Veira keeps your real figures accurate and eTIMS-compliant so your next return is just as easy. Book a free demo.