You are currently viewing File KRA Nil Returns Online: 2-Minute Guide for Dormant Firms | Adamjee Auditors

File KRA Nil Returns Online: 2-Minute Guide for Dormant Firms | Adamjee Auditors

Quick Answer
Dormant companies in Kenya must still file KRA Nil Returns monthly via iTax to avoid a Ksh 10,000 late filing penalty. The process takes under 2 minutes: log in, select the Nil Return form, enter zero values, and submit.
Key Takeaways
  • Even if your company conducted no business, KRA requires monthly filing, and failure to submit a Nil Return attracts a Ksh 10,000 late filing penalty.
  • Filing takes under 2 minutes through the iTax portal using your company PIN and password.
  • Select the correct Nil Return form (VAT Nil Return if VAT-registered, or the relevant Income Tax/PAYE return) and enter 0 for turnover, expenses, and tax payable.
  • After submitting, download or print the acknowledgment receipt as proof of compliance and for audit readiness.
  • KRA penalties are automatic, so timely filing each month is far easier than appealing a penalty afterward; saving login details and previous Nil Return templates speeds up the process.

How to File Nil Returns: A 2-Minute Guide for Dormant Companies

Dormant companies must file KRA Nil Returns monthly to avoid the Ksh 10,000 penalty. Filing takes under 2 minutes via iTax. No trading? No worries — just declare zero turnover.

Even if your company did not conduct any business, KRA requires monthly filing. Failure to submit a Nil Return attracts a Ksh 10,000 late filing penalty, so prompt compliance is essential.

Step 1: Login to iTax

Access your KRA iTax account using your PIN. Ensure your login credentials are active to file instantly.

  • Go to iTax portal

  • Enter your PIN and password

  • Navigate to the Returns section

Step 2: Select the Nil Return Form

Choose the correct Nil Return option. For monthly filing, select “VAT Nil Return” or “Income Tax Nil Return,” depending on your obligation.

  • If your company is VAT-registered but did not trade, select VAT Nil Return

  • If only income tax applies, select the relevant Paye/Income Tax Return

Step 3: Fill in Zero Values

Enter “0” for all turnover, income, or expenses. No calculations are needed — simplicity is key.

  • Turnover/Revenue = 0

  • Expenses = 0

  • Tax payable = 0

Step 4: Submit and Confirm

Click “Submit Return” and download your acknowledgment receipt for record-keeping. Filing is complete in seconds.

  • Click Submit

  • Save or print the confirmation PDF

  • You’re officially compliant and avoid the Ksh 10,000 penalty

Even dormant companies benefit from recorded Nil Returns for audit readiness. Our Bookkeeping Services can automate reminders for timely filing.

Tips for Fast Filing

Use recurring login sessions and save iTax templates to cut filing time to under 2 minutes each month.

  • Bookmark the iTax login page

  • Keep your company PIN and credentials handy

  • Save previous Nil Return details as a template

KRA penalties are automatic — avoiding them is easier than appealing afterward. Tax Compliance Services in Kenya can help schedule automated alerts for monthly filing.

Filing Nil Returns in Kenya is simple, fast, and essential even for dormant companies. Following these 4 steps ensures compliance and prevents costly monthly penalties.

Take 2 minutes now — save Ksh 10,000 later.

Gain Clarity and Confidence in Your Finances Navigate the complexities of compliance, tax, and financial management with a trusted partner. Adamjee Auditors, a member of Santa Fe Associates International (SFAI), provides world-class audit, tax, and advisory services to help your business achieve its goals.

Schedule a consultation with our expert team in Nairobi or Mombasa to discuss your business needs.

Nairobi Office  Park View Heights, Mombasa Road, OR Mbandu Complex, Langata Road  +254 717 908 241  info@adamjeeauditors.com

Mombasa Office  Suite 401, Motorwalla Building, Jomo Kenyatta Road  +254 703 899 606 / +254 717 908 241  info@adamjeeauditors.com  https://adamjeeauditors.com/

Frequently Asked Questions

Do dormant companies in Kenya have to file tax returns?
Yes. Even if your company did not conduct any business, KRA requires monthly filing of Nil Returns. Failing to submit attracts a Ksh 10,000 late filing penalty.
What is the penalty for not filing a Nil Return?
Failure to submit a Nil Return attracts a Ksh 10,000 late filing penalty, and KRA penalties are applied automatically.
How do I file a Nil Return on iTax?
Log in to iTax with your PIN and password, navigate to the Returns section, select the correct Nil Return form (VAT Nil Return or the relevant Income Tax/PAYE return), enter 0 for all turnover, income, and expenses, then submit and download the acknowledgment receipt.
How long does it take to file a Nil Return?
Filing takes under 2 minutes. You can cut the time further by bookmarking the iTax login page, keeping your company PIN and credentials handy, and saving previous Nil Return details as a template.
Which Nil Return form should I select?
If your company is VAT-registered but did not trade, select the VAT Nil Return. If only income tax applies, select the relevant Income Tax or PAYE return.

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