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Compliance and Statutory

4 Ways How KRA Deregistering PINs Will Affect You


KRA deregistering PINs is a move initiated by the authority to curb the number of people who have registered for the service but have consistently failed to file their returns.

The taxman has given a 30-day window within which persons are required to file their returns or face deregistration. Additionally, the Kenyan tax authority has given persons who feel they should not be registered for tax obligations to opt-out - this is in line with tax provisions of Sections 10 and 14 of the Tax Procedures Act, 2015. This notice comes at a time when most businesses and individuals are facing challenges due to economic tough times. 

The number of possible deregistered PINs is 62,272 from the press release, which is a worrying concern. With the systems in place, KRA deregistering PINs will harm individuals wishing to access basic services. 

Some services you will be unable to access with KRA Deregistering PINs 

1. Opening bank accounts 

Most banks require a KRA PIN for both businesses and individuals in order to open accounts. If you lose your KRA PIN you will be unable to access these services which could lock you out of financial services. For example, accessing bank loans. 

2. Registering of businesses

Among the requirements of registering a business in Kenya, you will need a PIN certificate. With KRA deregistering PINs, those affected will have a difficult time in exploring new business ventures. 

3. Importation of goods

If you are in the import business, the KRA PIN is an essential document that facilitates processes like clearing at customs. If KRA deregistering PINs affects you, there are high chances that your business will stall and this might contribute to the already deteriorating economic situation. 

4. Applying for jobs

Although not a prerequisite during the application process, when it comes to statutory payments e.g PAYE, NHIF and NSSF an employer is required to use your KRA PIN in order to facilitate the process. If you are among those that get affected with KRA deregistering PINs you might find it difficult to secure employment as companies want to remain compliant with the tax body. 

What can you do to be on the safe side?

According to the notice by KRA, if you feel that you are no longer obligated to file returns you should give a notice to the commissioner of tax. However, if you are still under tax obligation, the best approach is to contact the tax regulator, file your returns and pay any penalties if any. 

A point to note is that, even while deregistered, you are still liable for acts while still registered. 

Do you want to remain compliant? Here are easy tips on how to file your returns before the deadline. Worried you might be on the list? Why not find out here.

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