What is a KRA PIN and Why is it Important?
A Kenya Revenue Authority (KRA) Personal Identification Number (PIN) is a unique tax identifier required for various financial and legal transactions in Kenya. It is mandatory for individuals and businesses engaging in tax-related activities, including opening a bank account, purchasing property, or conducting business transactions.
For non-residents, obtaining a KRA PIN is essential for compliance with Kenyan tax laws, particularly when engaging in employment, business, or investment activities. The process may seem complex, but this guide simplifies everything you need to know about KRA PIN registration for foreigners.
Who Needs a KRA PIN in Kenya?
Foreigners in Kenya require a KRA PIN for various reasons, including:
Employment in Kenya
Business registration
Property acquisition
Vehicle registration
Compliance with tax obligations
Any foreigner engaging in these activities must complete KRA PIN registration for foreigners to comply with Kenyan tax regulations.
Requirements for KRA PIN Registration for Foreigners
Before initiating the registration process, ensure you have the necessary documents. The Kenya Revenue Authority requires the following:
For Foreign Individuals:
Copy of valid passport
Work permit or special pass issued by the Department of Immigration
KRA agent representation (if applicable)
For Foreign Companies:
Certificate of Incorporation
CR12 form (Company Shareholding Information)
Copy of passport for company directors
Work permit (if applicable)
Once these documents are in order, the registration process can begin.
How to Apply for a KRA PIN as a Foreigner
The registration process is primarily online through the iTax portal. Follow these steps to complete KRA PIN registration for foreigners:
Step 1: Visit the iTax Portal
Access the KRA iTax portal by navigating to itax.kra.go.ke. Click on "New PIN Registration."
Step 2: Select the Appropriate Applicant Type
Choose "Non-Resident" if you are an individual or "Company" if registering a business.
Step 3: Provide Personal or Company Details
Fill in the required fields, including:
Passport details
Work permit number (if applicable)
Business registration details (for companies)
Contact information
Step 4: Upload Required Documents
Scan and upload the necessary documents, such as your passport and work permit.
Step 5: Submit the Application
After verifying your details, submit your application. You will receive an acknowledgment receipt and a reference number for tracking.
Step 6: Receive Your KRA PIN
Once approved, you will receive your KRA PIN certificate via email. You can also download it from the iTax portal.
Common Challenges in KRA PIN Registration for Foreigners
While the process is straightforward, some common challenges include:
Work permit delays: Non-residents without a work permit may face difficulties.
Technical issues: iTax portal downtime can hinder registration.
Document verification delays: Incomplete or incorrect documents can slow down approval.
To avoid these challenges, ensure that all documents are valid and correctly uploaded.
How to Update or Retrieve a Lost KRA PIN
If you lose your KRA PIN or need to update your details, follow these steps:
Log in to the iTax portal and navigate to the “PIN Retrieval” section.
Provide your passport number or email address for verification.
Request a PIN retrieval, and you will receive it via email.
For updates, such as a change of work permit details, submit a request through iTax or visit a KRA office.
Tax Obligations for Foreigners with a KRA PIN
Obtaining a KRA PIN also means compliance with tax regulations. Non-residents may be subject to:
Income tax: If employed in Kenya
Value Added Tax (VAT): If engaging in business
Withholding tax: On applicable transactions
It is essential to file tax returns annually to avoid penalties.
Conclusion
KRA PIN registration for foreigners is a crucial step for anyone planning to work, invest, or do business in Kenya. The process is streamlined through the iTax portal, but ensuring you have the right documentation is key to a smooth registration. By following this guide, non-residents can successfully obtain their KRA PIN and comply with Kenyan tax laws.
