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KRA minimum tax is paid by individuals, companies, partnerships, limited partnership, trusts or associations. Persons exempt from paying minimum tax include income exempt under Income Tax Act, Employment income, residential rental income, capital gains, extractive sector business, business whose retail price is controlled by government and insurance business .Minimum Tax income is paid at a rate of 1% of the Gross income or sales.
Students filling KRA NIL returns are not required to pay any money because they do not have any income to declare.
To get a KRA pin for a company, you need a tax agent pin. Even those who apply locally use tax agents. The best thing to do is to contact a tax agent and ask them to apply the pin for you. They charge between Ksh. 2k to 20k.
You are getting the error “you cannot file NIL Return as you have Employment Income for the return period. Please file return using File Return option” because your there is some PAYE that was submitted by your employer before you lost your job, Therefore, you need file tax income returns for the months you were employed. If your employer submitted taxes they will be automatically populated in the forms.Login to kra itax portalClick returnsThen ITR for Employment IncomeClick Next to the last page.Before you click submit in the last page. Check whether there is any Tax Due or Refund Due. Negative number means the money KRA is supposed to refund you (for example -10,000) and positive number means the tax you are required to pay (for example 10,000).You can as well click on My Ledger to see whether there are any Taxes Deducted (PAYE) that were submitted by your employer for the months that you were employed.
KRA pin is required. One of the recommended KRA tax agents is Akkadian Solutions. You can contact them through phone number +254710195170 or +254725370011.