A KRA PIN is necessary in most monetary, legal, and business processes in Kenya. You need a PIN for various purposes, from simple processes like opening a bank account and applying for loans, to more meaningful things like exporting goods and purchasing property. You can register for a KRA PIN in Kenya as an individual, business, or non-resident. We’ve compiled this detailed step-by-step guide to help you register for a KRA PIN in Kenya. Keep reading to learn more.
If your business has not yet been incorporated, our company registration services in Kenya can help you complete the registration process before applying for the company’s KRA PIN.
What is a KRA PIN?
According to the Kenya Revenue Authority (KRA), a KRA PIN is a personal identification number that identifies you for various purposes, such as transactions with KRA, government agencies, and relevant service providers.
Think of a special number that identifies you in legal, official, and business transactions, instead of your name. Names can be similar. You’ve probably met someone with the exact three names as someone you know, including the middle and surname, yet they are a different person. That can’t happen with a KRA PIN. Every individual or business has a unique PIN, an 11-character code that’s exclusive to them.
Who Should Register for a KRA PIN?
Is a KRA PIN mandatory in Kenya? Yes, it is mandatory for all income earners. KRA requires every resident and non-resident earning an income in Kenya to register for a PIN for tax purposes. You should register for a KRA PIN if you are:
- Employed
- A landlord or landlady (earns rental income)
- A business person
- HELB applicant
- Taking part in the following transactions:
- Title registration, payment of land rent, and stamping of instruments by the Commissioner of Lands
- Application for business permit
- Payment of water and power deposits
- Vehicle registration
- Business/company registration
- Underwriting policies by Insurance Companies
- Imports, customs clearing, and forwarding
- Facilitation of contracts, tenders, etc, to supply goods to the government and public institutions
If you fall under any of the above categories, let’s show you how to register for a KRA PIN in Kenya below.
How to Register for a KRA PIN in Kenya
KRA offers PINs to individuals and entities, including companies, trusts, and Non-Governmental Organisations (NGOs). In this regard, KRA PINs are broadly divided into individual KRA PINs and non-individual KRA PINs. Let’s look at the steps to register for a KRA PIN in Kenya, whether individual or non-individual.
How to Register for an Individual KRA PIN
Here is a step-by-step guide on how to register for an individual KRA PIN:
Step 1: Access the KRA iTax Portal
- Open your web browser and visit the KRA Portal.
Step 2. Navigate to New PIN Registration
- Go to the New PIN Registration section and click on the provided link.
- The link will direct you to a new tab.
Step 3: Choose Your Taxpayer Type and Mode of Registration
- Click on Tax Payer Type and select Individual.
- Click on Mode of Registration and select Online Form.
- Select Yes or No depending on whether you want to register for a PIN with no obligation, e.g., for students with no income.
- Click Next to go to the next section of the form.
Step 4: Fill Out the PIN Registration Form
- Fill out the online form as required.
- Critical data includes your basic information, contact details, addresses, employment details, and tax obligation details.
- Upload any required documents.
Step 5: Submit the Application
- Submit the filled-out form.
- KRA will acknowledge receiving the form by sending an online acknowledgement receipt.
- The receipt contains a reference number that you’ll use to track the approval status.
That’s all. Once KRA has verified your details and approved the application, you’ll receive your new KRA PIN.
How to Register for a Non-Individual KRA PIN
As we mentioned earlier, a non-individual KRA PIN caters to an entity that includes more than one person. These include businesses, limited companies, partnerships, trusts, and NGOs.
Note: While a sole proprietorship is a business entity, it doesn’t fall under non-individual PIN registration. Such a business uses the proprietor’s individual PIN for legal and financial transactions. Here are the steps to register for a non-individual KRA PIN in Kenya:
Step 1: Access the KRA iTax Portal
- Open your web browser and visit the KRA Portal.
Step 2. Navigate to New PIN Registration
- Go to the New PIN Registration section and click on the provided link.
- The link will direct you to a new tab.
Step 3: Choose Taxpayer Type and Mode of Registration
- Click on Taxpayer Type and select Non-Individual.
- Click on Mode of Registration and select Online Form.
- Click Next to go to the next page.
Step 4: Fill out the PIN Registration Form
- Fill out the required details, including business basic information, tax obligation details, director and partner details, and tax agent (if any).
- If you don’t have a tax agent, skip the section.
- Answer the final question.
Step 5: Submit the Application
- After completing the form, click Submit.
- KRA will send you an acknowledgement receipt with a reference number. You’ll use this number to track the application.
Upon approval, KRA will send you the PIN certificate with your new PIN.
Benefits of a KRA PIN and Why You Need One
A KRA PIN is a necessity for most legal, business, and financial activities in Kenya. Here’s why you need a KRA PIN:
- Legal Compliance: Legal compliance is essential for every adult individual and legal entity. KRA demands that every person or business with an income acquire a PIN for tax purposes.
- Access to Services: Various services in Kenya require a KRA PIN, from applying for higher education loans (HELB) and grants to opening bank accounts.
- For Business, Legal, and Financial Transactions: A KRA PIN is mandatory for various business, legal, and financial transactions like registering land titles, motor vehicles, real estate, and companies. Other activities that require this PIN are underwriting insurance policies, obtaining public utilities like water and electricity, and bidding for government tenders.
- Tax Compliance: Having a KRA PIN simplifies your tax processes. You can file your individual or business returns online via the iTax portal easily.
- Credibility: Having a KRA PIN cements your credibility. Government agencies, investors, business partners, banks, and other financial institutions find you trustworthy to conduct business with.
Tips for a Smooth KRA PIN Registration Process
Follow these tips to streamline your KRA PIN registration process:
- Prepare required documents beforehand: Identify the required documents like copies of identity cards, passports, passport photos, company documents, etc. Prepare them beforehand to make it easy to upload them online.
- Verify your documents to avoid rejection: KRA may reject your application for small errors and inconveniences like unclear copies of documents and photos. Double-check to ensure everything is clear and professional.
- Follow up: KRA provides a reference number to track your application. Follow up with KRA customer care to get updates on your application status.
- Seek assistance from experts: For an overall smooth application process and prompt approval, work with a tax expert. An expert will provide expert guidance and comprehensive support that saves you time and headaches.
Are you looking for assistance with KRA PIN registration? Gichuri & Partners is a leading tax consultancy in Kenya, specializing in tax compliance services. Contact us for quick and hassle-free KRA PIN registration. Let’s help you stay compliant and access legal and financial services by obtaining a KRA PIN.
