Taxation for Not-For-Profit Organisations

What is a KRA PIN?

It is a personal identification number which identifies you for purposes of transacting business with Kenya Revenue Authority, other Government agencies and service providers.

 

Uses of a KRA PIN

1. NPO’s shall state their PIN;

  • On any return, notice or other document submitted, lodged, or used for the purposes of a tax law, or as otherwise required under a tax law; or
  • On any documentation required for a transaction specified below as per the First Schedule.

2. One PIN shall be issued to each person and it shall not be used by a person other than the person to whom it was issued.

3. The PIN of a company or partnership may be used by a tax agent when—

  • They have given written permission to the tax agent to use the PIN; and
  • The tax agent uses the PIN only in respect of the tax affairs of the company or partnership.

 

What documents do I require to register for a PIN?

  • Copy of Certificate of Incorporation.
  • Copy of CR12.
  • Copy of Memorandum and Article of Association (optional).
  • Copy of PIN Certificate for one of the company’s directors.
  • Copy of Tax Compliance certificate of one of the company’s directors.
  • Copy of the Acknowledgement receipt.

 

How do I register for a PIN?

1. Visit iTax, to initiate the process.

2. Click on New "PIN registration"

3. Select Taxpayer type "Non-Individual"

4. Mode of registration (choose either online form or upload form) 

5. Business type as "Others" and select the appropriate business sub type

6. Tax Obligations include:

Income Tax Resident/Non - Resident –This is a compulsory tax obligation for both resident and non – resident individuals for purposes of declaring any income earned within a stipulated period of time. Read More

Pay As you Earn – If you are an employer, you are required to register for this obligation. Read more

Turnover Tax – It is applicable to businesses whose turnover (income) does not exceed Kshs. 5 million during any year of income. Mainly for those in the informal sector where tax procedures, computation and record keeping are basic. Read More

Value Added Tax - Any person supplying or who expects to supply taxable goods and taxable services with a value of Kshs 5 Million or more in a year qualifies to register for VAT. The law also allows for voluntary registration. Read more

7. Select your ‘Source of income’ if any and provide necessary details under source selected

8. If you are an agent who will be taking care of a taxpayer duties and obligations, you are required to enter their details in the agent details section.

9. Fill in correct answer to arithmetic sum provided and click on ‘Submit’

10. Ensure you input at least 1 PIN of the company director(s) to will be used for the initiation process. Always ensure the directors details are tax compliant and is on iTax.

 

You will receive an acknowledgment receipt on completion of the online application.
A follow up email will be sent to you with either further instructions on where to present the required documentation for verification or a PIN certificate.