Understanding KRA PIN

A KRA PIN (Kenya Revenue Authority Personal Identification Number – PIN) is a unique identifier used when conducting business with the Kenya Revenue Authority (KRA), various government agencies, and service providers in Kenya. It plays a critical role in tax administration and ensures that both individuals and entities (businesses, companies and organizations) comply with the tax regulations set by the government.

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The KRA PIN is essential for a wide range of transactions, making it a vital part of both personal and business dealings in Kenya. Personal Identification: The term “personal” in the KRA PIN context encompasses both individuals and non individuals such as companies, clubs, groups, organizations, societies, trusts, and other legal entities. 

What is a KRA PIN? 

A KRA PIN, which stands for Kenya Revenue Authority Personal Identification Number (PIN), is a unique alphanumeric code assigned to individuals and entities by the Kenya Revenue Authority (KRA). This PIN serves as a critical number in tax administration, enabling the government to identify and track taxpayers for the purpose of assessing and collecting taxes. The KRA PIN is mandatory for both individuals and organizations that engage in taxable activities, ensuring that everyone who earns an income, conducts business, or engages in specific financial transactions in Kenya is accounted for in the tax system.

The KRA PIN is not limited to tax matters alone; it is also a key requirement for various official transactions within the country. For instance, individuals need a KRA PIN when opening a bank account, applying for a job, or purchasing property. Similarly, non individuals require a KRA PIN for activities such as registering a company, obtaining licenses, or bidding for government contracts and tenders. The wide-ranging applications of the KRA PIN make it an indispensable identifier for anyone engaging in economic activities in Kenya.

Moreover, the KRA PIN plays a vital role in promoting transparency and accountability within the financial system. By linking financial transactions to a unique identifier, the KRA can efficiently monitor and enforce tax compliance, thereby reducing the incidence of tax evasion. This system ensures that every individual and entity contributes their fair share to the nation’s revenue, which is crucial for funding public services and fostering economic development in Kenya.

Types of KRA PIN in Kenya

Understanding the different types of KRA PIN Number is essential, as the type of PIN you apply for depends on your status as an individual or a non-individual entity. Below is a breakdown of the types of the two main types of KRA PIN in Kenya:

1. KRA PIN for Individuals

• Resident Individual: This type of KRA PIN is issued to Kenyan citizens or residents who are living in Kenya. It is required for all tax-related transactions and other official dealings within the country.
• Non-Kenyan Resident Individual: This KRA PIN is for non-Kenyan individuals who are residing in Kenya. They may need a KRA PIN for tax purposes, especially if they are employed, running a business, or have other financial engagements in the country.
• Non-Kenyan Non-Resident Individual: This type of KRA PIN is issued to individuals who are neither Kenyan citizens nor residents of Kenya. It is typically required for those who have financial transactions or business interests in Kenya, such as investments or property ownership.

2. KRA PIN for Non-Individuals

• Company: Companies registered in Kenya, whether local or foreign-owned, must have a KRA PIN. This PIN is used for all tax-related activities, including VAT registration, filing corporate taxes, and engaging in government contracts.
• Group: Groups, such as self-help groups or community-based organizations, are required to have a KRA PIN. This enables them to transact with government agencies and service providers and ensures they comply with tax obligations.
• Schools: Educational institutions, including primary, secondary, and tertiary schools, are issued a KRA PIN. This PIN is necessary for transactions like paying taxes, registering assets, and receiving government funding or grants.
• Churches: Religious organizations, such as churches, must also have a KRA PIN. This allows them to engage in financial transactions, register property, and comply with tax regulations when necessary.
• Societies: Societies, which include clubs, associations, and unions, are required to obtain a KRA PIN. This is important for managing finances, registering assets, and fulfilling any tax obligations.
• NGOs (Non-Governmental Organizations): NGOs operating in Kenya must have a KRA PIN. This PIN is used for tax compliance, registration, and accessing government services or grants.

Who Should Have a KRA PIN?

Those who need to have KRA PIN Number are classified intoIdividuals and Non Individulas. Individuals basically means persons reseiding in Kenya while Non Individuals basically means legal entities operating in Kenya. 

• Individuals: If you are an individual in Kenya, you need to apply and register for KRA PIN Numberonline. 
• Non Individuals: If you are a non individual in Kenya, you need to apply and regsiter for KRA PIN Number online.

Where Can I Use the KRA PIN?

The KRA PIN is crucial for numerous transactions in Kenya. Here are some of the most common instances where the KRA PIN is required:

• Land Transactions: When registering the title of land, stamping instruments with the Commissioner of Lands, or paying land rent, a KRA PIN is mandatory. This ensures that all land-related transactions are properly recorded and taxed.
• Local Authority Services: Approval of building plans, payment of water deposits, application for business permits, and payment of land rent to local authorities all require a KRA PIN. This PIN helps streamline these processes and ensures that all fees and taxes are collected appropriately.
• Motor Vehicle Registration: The registration of motor vehicles and obtaining licenses under the Traffic Act (Cap 403) requires a KRA PIN. This PIN is used to track vehicle ownership and ensure that the appropriate taxes are paid.
• Business Name and Company Registration: When registering a business name or company, the Registrar of Business Names and Companies requires a KRA PIN. This helps maintain an accurate record of businesses in Kenya and ensures compliance with tax regulations.
• Trade Licensing: The Ministry of Commerce requires a KRA PIN when issuing trade licenses. This is part of the government’s effort to regulate businesses and collect taxes efficiently.
• VAT Registration: When applying for Value Added Tax (VAT) registration, a KRA PIN is necessary. VAT is a significant source of revenue for the government, and the KRA PIN helps track and collect this tax.
• Insurance Policies: Underwriting policies by insurance companies also require a KRA PIN. This ensures that insurance transactions are properly documented and taxed.
• Customs and Excise: The KRA PIN is used to facilitate the importation of goods, customs clearing, and forwarding at the offices of the Commissioner of Customs and Excise. This helps in regulating the flow of goods into the country and ensures that the correct duties and taxes are paid.
• Utility Connections: Payment of deposits for power connections at Kenya Power and Lighting Company Ltd. requires a KRA PIN. This ensures that all payments are properly recorded and taxes are collected where applicable.
• Government Contracts: A KRA PIN is required for all contracts involving the supply of goods and services to government ministries and public bodies. This helps ensure transparency and accountability in government procurement processes.

Why is KRA PIN Important?

KRA PIN serves as a critical document for the Kenyan government in tax administration. It helps the Kenya Revenue Authority track and manage tax payments, ensuring that individuals and non individuals meet their tax obligations. The KRA PIN also plays a significant role in preventing tax evasion and promoting transparency in financial transactions.

Moreover, the KRA PIN is vital for individuals and non individuals to engage in various transactions and access services that are essential for their operations. Without a KRA PIN, it would be impossible to complete many of the transactions listed above, which could hinder both personal and business activities.

How to Apply for KRA PIN (Individuals)

Below are the main steps of applying and registrering KRA PIN for individuals in Kenya. If you are applying for KRA PIN for Kenya resident, Non Kenyan Resident or Non Kenyan Non Resident, you need to follow the KRA PIN registration steps outlined below. 

1. Visit iTax (KRA Portal)

The first step in the process of applying or registering for KRA PIN Number online for individuals is to visit iTax (KRA Portal).

URL: itax.kra.go.ke

• Tip: Use a secure and updated browser to access the portal. It’s best to use Google Chrome or Mozilla Firefox for compatibility. Ensure that your internet connection is stable to avoid disruptions during the KRA PIN application process.

2. Click the ‘Register’ Button

Once you are iTax homepage, click on the “Register” button to begin the process of applying for KRA PIN online for individuals. 

• Tip: The ‘Register’ button is prominently displayed on the homepage. If you have trouble finding it, look for options related to ‘New PIN Registration’ or ‘Register for a PIN’.

3. Select Taxpayer Type as ‘Individual’

Since we are registering KRA PIN for indivual, the option that needs to be selected in this step in “Individual” KRA PIN Number.

• Tip: Be careful to select ‘Individual’ as this option applies to personal KRA PIN registrations for individuals. Selecting a different type, such as ‘Non-Individual,’ may lead to complications or require different documentation.

4. Choose Mode of Registration as ‘Online Form’

Select the mode of registration that is to be used, in this case “Online Form” is the one to use for application and registration of KRA PIN online. 

• Tip: Opting for the ‘Online Form’ allows you to fill in your details directly on the website. Ensure you have all required documents on hand, such as your National ID, Alien ID, Refugee ID or Passport, to make the process smoother.

5. Choose either “Yes” or “No” for “Do You Want to Register for a PIN with No Obligation?”

In this step, you need to choose whether you want to apply for KRA PIN with no Tax Obligation or not. In this example, we shall choose “No” as we want the KRA PIN to have the relevant tax oblgations. 

• Best Practice: Select ‘No’. By doing so, you’ll ensure that you can add relevant tax obligations such as income tax, VAT, or PAYE if applicable, which are necessary for most individuals.
• Tip: If you’re unsure about tax obligations, consult a tax expert or the KRA customer service before proceeding.

6. Click the ‘Next’ Button

In this step, you need to click on the “Next” button to start the process of KRA PIN registration online using iTax (KRA Portal).

• Tip: Before clicking ‘Next,’ review the information you’ve entered to ensure accuracy. Mistakes at this stage may require you to restart the process.

7. Select Your Citizenship Status

Next, select your citizenship status either Kenyan Resident, Non Kenyan Resident or Non Kenyan Non Resident on the registration form.

• Options: Kenyan Resident, Non-Kenyan Resident, or Non-Kenyan Non-Resident
• Tip: If you are a Kenyan citizen, choose ‘Kenyan.’ For foreign residents or non-residents, ensure you have the necessary documentation that supports your status in Kenya, such as a Alien ID, Refugee ID or Passport.

8. Fill in the Basic Information

In this step you need to fill in all the basic information such as Profession, Principal Physical Address, Principal Postal Address, Principal Contact Details etc. 

• Required Details: ID Number and Date of Birth (this will populate the individual information details) 
• Tip: Double-check the spelling of your name and ID or passport number. Any inconsistencies may lead to delays in processing or future complications. Use your official names as they appear on your identification documents.

9. Fill in the Obligation Details

For individuals in Kenya, the required tax obligation is the Income Tax Resident. Always ensure you select the correct tax obligation before proceeding to the next step. 

• Tip: Select the tax obligations that apply to you. For most individuals, Income Tax Resident is mandatory. If you own a business, you might also need to select Value Added Tax (VAT) or Pay As You Earn (PAYE).
• Best Practice: If unsure about which obligations to select, consult with a tax professional or contact KRA support for guidance.

10. Fill in the Source of Income Details

Fill in the source of income details. This can either be Business Income, Rental Income or Employment Income. If you don’t have any source of income, select “No” in each field. 

• Tip: Accurately declare your source(s) of income. If you are employed, select ‘Employment’ and provide the necessary employer details. If you are self-employed, choose ‘Business’ and provide relevant business information. Providing accurate information helps avoid issues with tax compliance later. If you have rental properties, select “Rental Income” and if you don’t have any of these just select “No” and proceed. 

11. Solve the Arithmetic Question

In this step, you need to solve the arithmetic question before submitting the KRA PIN registration form online on iTax (KRA Portal). 

• Tip: This step is designed to ensure that a human is filling out the form. Answer the question carefully; if you get it wrong, you may be asked to re-enter the information.

12. Submit KRA PIN Registration

Once you have correctly filled in the KRA PIN application form, click on the submit button to register and generate your KRA PIN Certificate. 

• Tip: Before submitting, review all the details once more to ensure there are no errors. Once satisfied, click the ‘Submit’ button. If the system times out or you face an error, try refreshing the page or re-entering the information.

13. Download KRA PIN Certificate

Last, download the generated KRA PIN Certificate on iTax (KRA Portal). At this point, you can either save a soft copy of the KRA PIN Certificate or print a hardcopy of the KRA PIN Certificate.

• Tip: After submission, you will receive a confirmation and your KRA PIN certificate will be generated. Download and save it immediately. Also, print a hard copy and store it safely as it is required for various legal and financial transactions in Kenya.
• Best Practice: Ensure that your KRA PIN certificate is backed up digitally, either in cloud storage or on a secure device.

By following the above listed steps carefully and accurately, you can successfully apply and get your KRA PIN Number and KRA PIN Certificate online with ease and convenience. 

How to Apply for KRA PIN (Non Individuals)

Below are the main steps of applying and registrering KRA PIN for non individuals in Kenya. If you are applying for Company (Private, Public or Foreign) Self Help Group, Non Governmental Organization, Church, School or Society, you need to follow the KRA PIN registration steps outlined below. 

1. Visit iTax (KRA Portal)

The first step in the process of applying or registering for KRA PIN Number online for non individuals is to visit iTax (KRA Portal).

URL: itax.kra.go.ke

• Tip: Use a secure, updated browser like Google Chrome or Mozilla Firefox to access the portal. Ensure a stable internet connection to prevent interruptions during the registration process. Bookmark the iTax portal for future reference.

2. Click on the ‘Register’ Button

Once on the iTax (KRA Portal) homepage, click on the “Register” button to begin the process of KRA PIN registration for non individual online. 

• Tip: The ‘Register’ button is typically visible on the homepage. If you can’t locate it immediately, search for registration options or links related to PIN registration. Hover over the main menu for easier navigation if needed.

3. Select Taxpayer Type as ‘Non-Individual’

Since you are registering non individual KRA PIN Number, click on “Non Individual” as the taxpayer type to begin the process. 

• Tip: Carefully choose ‘Non-Individual’ as this is specific to entities like companies, Groups, Schools, Churches, Societies, NGOs, and other organizations. Selecting the wrong type may cause delays and require you to restart the registration process.

4. Choose Mode of Registration as ‘Online Form’

The mode of non individual KRA PIN application to be selected is the “Online Form” method. Click on it to start the process of KRA PIN registration. 

• Tip: Opt for ‘Online Form’ for convenience and immediate processing. Before starting, gather all necessary documents, such as company registration details, certificates, and any official identification numbers related to your business or organization.

5. Click the ‘Next’ Button

Once you have selected the mode of registration for the non individual KRA PIN, click on the “Next” button to proceed to the next step. 

• Tip: Before proceeding, double-check the information entered so far. Ensure that you have selected the correct taxpayer type and mode of registration. Errors at this stage may complicate the process later.

6. Select the Business Type

In this step, you need to select the business type. This can either be: company, non governmental organization international organization, diplomatic organization, government instituton or other (groups and societies).

Options: Company, Non-Governmental Organization, International Organization, Diplomatic Organization, Government Institution, or Others

• Tip: Choose the category that accurately reflects your entity. For example:
  • If you are registering a company incorporated in Kenya, select ‘Company.’
  • If it’s a charitable entity, choose ‘Non-Governmental Organization.’
  • For foreign missions, select ‘Diplomatic Organization.’
  • If you are registering a Self Help Group registered in Kenya, select ‘Others.’
• Best Practice: Make sure to select the correct business type as any wrong selection will lead to rejection of your non individual KRA PIN application by KRA approving task manager. .

7. Fill in the Basic Information

Fill in the basic information of the entity that you are applying the KRA PIN for online using iTax (KRA Portal). 

• Required Details: Business name, registration number, incorporation date, address, contact information, etc.
• Tip: Use official documentation to ensure accuracy, especially for details like the business registration number and name. Any discrepancies could lead to delays or the need for corrections. Ensure that the contact details provided are up-to-date and monitored regularly for communication from KRA.

8. Fill in the Obligation Details

Fill in the tax obligation(s) for the entity that you are applying KRA PIN Number for. The default tax obligation is normally Income Tax Company. You need to select the approriate tax obligations for the entity. 

• Tip: Select the tax obligations applicable to your entity. Common obligations for companies include Income Tax Company, VAT, and PAYE. Non-Governmental Organizations may have different tax obligations, so it’s crucial to select accurately.
• Best Practice: If you are unsure which obligations apply, consult a tax advisor or KRA support. Incorrect selection can result in non-compliance or penalties.

9. Fill in the Nature of Association

In this step, you need to capture details of the business associates, directors, partners, officials and others. You do this by entering their KRA PIN Number and the system auto-populates their KRA PIN details online. 

Options: Business Associate, Director, Partner, or Others

• Tip: This section requires you to specify the role or relationship of the person completing the registration with the entity.
  • If you’re a company director, select ‘Director.’
  • If you’re acting on behalf of a partner in a partnership, select ‘Partner.’
  • If you’re representing the entity in another capacity, select ‘Others’ and provide the relevant details.
  • If you’re group chairman, secretary or treasurer, select ‘Others.”
• Best Practice: Be clear and honest about your association with the entity. Misrepresentation can lead to complications or issues with your PIN registration or even rejection of your application for non individual KRA PIN Number.

10. Solve the Arithmetic Question

In this step, you need to solve the arithmetic question after you have captures all the relevant details of the entity that you are applying KRA PIN for online using iTax (KRA Portal).

• Tip: The arithmetic question is a basic captcha to confirm that a human is filling out the form. Answer carefully, as an incorrect response will require you to re-enter information.

11. Click the ‘Submit’ Button

In this step, you need to click on the “Submit” button to complete the process of KRA PIN application for non individual on iTax (KRA Portal). 

• Tip: Review all the information one last time before submitting. Ensure that all details are correct, and that you have selected the appropriate tax obligations and business type. Once satisfied, click ‘Submit.’ If any errors occur, take note of them, correct as needed, and try submitting again.

12. Download the e-Registration Acknowledgement Receipt and Wait for Approval

The final step in the process of KRA PIN registration for non individuals is to download the e-Registration acknowleedgement receipt and wait for approval by KRA in 3 to 5 working days via email address. 

• Tip: After submission, an e-registration acknowledgement receipt will be generated. Download this receipt immediately and save a digital copy in a secure location. Also, print a hard copy for your records.
• Next Steps: The KRA will review your application. This process may take a few days. You can check the status of your application through the iTax portal using your application details. Approval is required before you can use your non-individual KRA PIN for tax-related transactions.
• Best Practice: Monitor your email and the iTax portal for any communication from KRA regarding your application. If the approval process takes longer than expected, consider reaching out to KRA support for an update.

By following these steps carefully, you can successfully apply for a Non-Individual KRA PIN, ensuring that your business, company, group or organization is compliant with Kenyan tax regulations.

Conclusion

The KRA PIN is an essential tool for tax administration and financial transactions in Kenya. Whether you are an individual, a business owner, or a student applying for a HELB loan, having a KRA PIN is crucial for engaging with government agencies and service providers. Understanding the different types of KRA PINs and knowing when and how to use them can help you navigate various transactions smoothly and ensure compliance with tax regulations.

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By ensuring that you have the correct type of KRA PIN and using it appropriately, you contribute to the effective administration of taxes in Kenya, which in turn supports the country’s economic development. Whether you’re buying land, registering a vehicle, or applying for a business permit, your KRA PIN is your key to accessing these essential services and more.