How to Remove an Erroneous Tax Obligation From Your KRA PIN

Many taxpayers, especially those who file their returns through third parties such as cyber café operators, often find that their KRA PINs have tax obligations they never signed up for.

Among the most common complaints is the unexpected addition of a Rental Income Tax obligation, even for individuals who do not own rental property. Similar cases have also been reported involving Value Added Tax (VAT) obligations.

In such cases, taxpayers receive notices requiring them to file tax returns and pay outstanding taxes, despite not being liable for the obligations.

Money254.co.ke reached out to the Kenya Revenue Authority (KRA) on the steps taxpayers should follow to have the erroneous obligations removed from their PINs.

Also Read: KRA Announces Tax Amnesty to Waive Penalties and Interest; How to Apply

Step 1: File NIL Returns

According to KRA, taxpayers should first ensure that all outstanding returns are filed. For example, in the case of an erroneous Rental Income Tax obligation, one should continue filing nil Rental Income Tax returns before seeking the removal of the obligation.

This is important because the tax obligation remains active in the system until it is officially removed.

Step 2: Complete the Obligation Removal Form

The affected taxpayer is then required to fill out KRA's Application for Removal of Tax Obligations form.

The form requires basic details such as the taxpayer's PIN, name, the tax obligation to be removed, and the reason for the request. You can access the form here.

Also Read: How to File KRA Tax Returns Through WhatsApp

Step 3: Attach Supporting Documents

KRA requires several documents to verify that the taxpayer does not earn rental income or engage in the business activity associated with the erroneous tax obligation.

In the case of Rental Income Tax, the required documents include a completed Application for Removal of Tax Obligations form, an affidavit confirming that you do not own any rental property, and six months' M-Pesa statements or stamped bank statements.

You will also need a signed and stamped letter from your local Chief or Assistant Chief confirming that you do not own rental property.

Additionally, you should attach a signed request letter addressed to the Commissioner of Domestic Taxes requesting the removal of the Rental Income Tax obligation and the reversal of any penalties. The letter should also include your phone number.

Also Read: How to File Nil Tax Returns on KRA's iTax

Step 4: Submit the Documents

Once all the documents are ready, they should be emailed to callcentre@kra.go.ke for processing.

KRA will review the application and, where satisfied that the taxpayer does not have rental income or a VAT obligation, remove the erroneous tax obligation from the taxpayer's PIN.

How to Avoid Erroneous Tax Obligations

Taxpayers are advised to regularly log into their iTax accounts to confirm that only the correct tax obligations are listed under their KRA PIN.

If you use a tax agent or cyber café to file your returns, always review the information being submitted before it is filed.

Taxpayers are also encouraged to keep their iTax credentials private and periodically check their tax profiles, especially before filing their annual tax returns.

If you notice an unfamiliar tax obligation on your PIN, it is advisable to act promptly rather than ignore it. Ignoring the emails from KRA can result in more penalties and interest.