The law requires all businesses operated in Kenya must comply with tax legislation as set out in the Income Tax Act. Accordingly, compliance involves being aware and observing these legal and regulatory obligations failure to which a corporate could encounter increasing tax costs and penalties from non-compliance. In Kenya, the Kenya Revenue Authority (KRA) is the organization responsible for tax collection and administration of tax regulations.

To begin with, all businesses are required to have a personal Identification number (PIN). This number is unique to every taxpayer, and it facilitates easy identification. All entities doing business in Kenya are required by law to have a PIN which can easily be obtained by filling out an e-form on the KRA-website portal or visiting KRA registered offices.

As a business, it’s important to examine the various types of taxes payable in Kenya and the regulatory requirement before digging into the process of tax registration, which is rather simple. Entities doing business in Kenya can register for and pay two different types of taxes. These are, direct and indirect. Indirect taxes include Value Added Tax (VAT), which is tax paid on products or services rather than directly to the government on income generated.

Tax Registration in Kenya

According to the Kenyan tax laws, certain transactions like business registration, import/export business or buying and selling property can only be done when one has a KRA PIN. Besides, tax compliance like filing and paying taxes can only be completed when one has a KRA PIN. All in all, the process of tax registration in Kenya is a simple one, although it differs for individuals, partnerships, and businesses. 

Here are some of the documents you might require as a business.

1. A copy of the Certificate of Incorporation.
2. A copy of CR12.
3. A copy of the Memorandum and Article of Association.
4. A copy of the PIN Certificate for one of the company’s directors.
5. A copy of the Tax Compliance certificate of one of the company’s directors.
6. A copy of the Acknowledgement receipt.

Registration on the KRA iTax Portal

The Kenya Revenue Authority has taken measures to ensure the automation of the tax registration process. Registering a PIN is free, and this can be completed easily through the KRA iTax platform in four simple steps.

1. Search for iTax – KRA website

2. Select “New PIN Registration”
3. Fill in the online form ensuring all details are correct
4. Submit the application.

About Crown Tax

As Crown Tax, our mandate is to provide consulting and independent tax advisory services. We are professional specialists in tax consultancy providing high-end tax advisory services to both local and multinational clients. Our comprehensive approach ensures that our clients worry less about changing tax laws and obligatory compliance, allowing them time to focus on their core business.