What is the use of a KRA pin?

Answer 1

The moment you get your KRA Personal Identification Number (PIN), the taxman has you. You are within the tax net and there's no escape.

Ever.

So why would you get one?

Primarily in Kenya, a Personal Identification Number (PIN) is the taxpayers' identification for Income Tax purposes. But a taxpayer can use the PIN for various other purposes. They are:-

1.Processing of Your Tax Refunds: Where a taxpayer has submitted returns which result in a repayment or refund; a PIN is necessary to get the refund. The KRA will advise you on when it will be necessary to carry out an audit before payment of the refund claim. There are two types of tax refunds:-

Income Tax Refund:

• Processed within 120 days from the day of processing the return where the return is for the immediate past year of income.
• Processed within 30 days from the date of processing the return where the return is for a year of income other than the immediate past year of income.

VAT Refund:

• Processed within 90 days of submission of application for normal refunds and 60 days for withholding VAT refunds

2. Application for Tax Exemption: Tax Exemption Certificates are processed and issued within 1 month of application, subject to submission of all relevant documentation and the taxpayer meeting all requirements to be granted exemption from paying tax..

3. Acquiring Tax Clearance /Compliance Certificates: Tax clearance or Compliance Certificate is given upon application and confirmation that there are no tax arrears.

Then of course, with a KRA PIN, banking institutions and any other organisations like the Higher Education Loans Board (HELB) that ask for it will be able to trace you to your doorstep, bringing good or bad news depending on how good your relationship with rules and laws of this republic has been.

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