Hundreds of non-Kenyans are increasingly coming to Kenya for various purposes, including professional and personal. Professionally, foreigners see Kenya as a great destination for employment, business, and investment. Our growing economy attracts a diverse range of talents, including engineers, doctors, architects, tech experts, remote workers, and innovators. Those coming here for business reasons target our rich consumer potential in healthcare, manufacturing, technology, and agriculture.
Kenya also attracts foreign students and young people who come here for educational exchange programs, further studies, and employment opportunities. The other group that comes to Kenya comes for personal reasons, like lifestyle change, tourism, affordable living, and temporary stay.
Whatever the reasons for visiting Kenya, non-Kenyans require a KRA PIN for various legal and business activities. These include opening a bank account, tax compliance, property acquisition, and utility services. Are you wondering where to start as a foreigner looking to obtain a KRA PIN? This guide explains KRA PIN registration for foreigners, including the requirements and the step-by-step process.
Which Foreigner Needs a KRA PIN?
Not all foreigners coming to or transacting with Kenya require a KRA PIN. Below are examples of non-Kenyans who need a KRA PIN:
- Residents
- Foreign employees residing and working in Kenya
- Foreign investors
- Diplomats
- Refugees
- Dependants, e.g., Foreigners married to a Kenyan
- Foreign students
- Missionaries
- Non-Residents: These are mostly foreign investors who reside outside Kenya. They could be investing in a Kenyan business, buying property, or acquiring inheritance, etc.
Importance of KRA PIN to Foreigners
A KRA PIN is a unique identifier code consisting of 11 characters. This code identifies the individual or business as they transact with the Kenya Revenue Authority, government bodies, and service providers. Below are the various benefits of a KRA PIN to a non-Kenyan:
Fulfill Tax Obligations
Whether you are a foreign investor, employee, or entrepreneur, obtaining a KRA PIN is the first step towards tax compliance. The PIN is a legal requirement and helps you fulfill your tax obligations, like PAYE, income, and turnover tax.
Access Business Services
Non-Kenyans looking to set up a business in Kenya require a KRA PIN for business/company registration, applying for a business permit, applying for government tenders, among other services.
Access Financial Services
Foreigners, from investors to students, require banking services and other financial services. A KRA PIN is needed to open a bank account, apply for loans, among other financial activities.
Import Goods
If you’re a foreign investor looking to import goods to Kenya for business, you need a KRA PIN for importation. This PIN comes in handy when paying excise duty, taxes, etc.
Acquire Property in Kenya
KRA PIN is a requirement for property acquisition, whether it’s land, property, or an apartment.
Access Utility Services
You need a KRA PIN to access utility services like electricity, internet, and water. These services require this PIN to verify your identity and ensure proper billing.
How to Register for a KRA PIN as a Non-Kenyan
Here is the step-by-step KRA PIN registration process for foreigners:
Step 1: Prepare Required Documents
Foreigner KRA PIN registration requires specific documents, and this varies from one type of foreigner to another. For instance, a refugee requires their alien ID and employer’s PIN details, while a foreign investor requires a passport and a letter of introduction from a tax agent. Some of the required documents for the foreigner KRA PIN registration include:
- National or Alien ID
- Work permit
- Employer’s KRA PIN
- Letter of introduction from employer
- Business registration documents
- Letter of introduction from a tax agent
- KRA PIN of the tax agent
- Letter of appointment of a tax agent by the applicant
- Proof of investment
- Endorsement letter from KenInvest
- Valid passport
- Student pass
- Etc
Do your due diligence to find out the required documents for your specific case and prepare them beforehand.
Step 2: Log in to the iTax Portal
Go to the iTax portal. Click on New PIN Registration.
Step 3: Choose Taxpayer Type and Mode of Registration
Click on Taxpayer Type and select either Individual or Non-Individual. Non-Individual applies to businesses, companies, partnerships, and other foreign legal entities. Go to Mode of Registration and select Online form. Finally, select Yes or No when asked whether you want to register for a PIN with no obligation. Click Next to move to the next page.
Step 4: Fill in your Basic Information
Select the Non-Kenyan Resident or Non-Kenyan Non-Resident checkboxes under residential details. Fill out the rest of the form, including the employee’s profession, bank details, and tributary bond details. Upload the required documents. Verify every detail is provided on this window, then click Next to go to the following page.
Step 5: Fill in the Obligation Details
Select your tax obligations and fill in the registration dates. Verify the details and then click Next.
Step 6: Fill in Income Details
Select your sources of income, whether employment, rental income, or business. Enter the required details like the employer’s PIN and name, business income details, and rental income details. Verify the details and click Next.
Step 7: Fill in Agent Details (Where Applicable)
Enter the tax and intermediary agent details if they apply to your registration. Verify the details. Solve the arithmetic problem and then click Submit. If you made some errors, you’ll see them under the Error Tab. Rectify the errors and resubmit.
Step 8: Issuance of KRA PIN Certificate
KRA will review your application. Upon approval, the tax authority will send you a KRA PIN certificate that you can download from your iTax portal. You’ll find your unique KRA PIN on this certificate.
Tips to Ensure a Smooth KRA PIN Registration for Foreigners
Want your non-Kenyan KRA PIN registration process to be quick? Follow these tips:
- Understand the different foreign categories: Identify the category you fall under before starting the registration process. These categories include non-Kenyan employees residing in Kenya, non-Kenyan investors residing in Kenya, non-Kenyan investors residing outside Kenya, and diplomats. See more details on the KRA website.
- Do due diligence on all required documents beforehand: You will be required to upload copies of relevant documents like passports, alien ID, and work permits. Find out which documents apply to your foreign category beforehand and prepare them.
- Hire a tax consultant: Tax consultants have experience and the needed resources to assist foreigners in applying for a KRA PIN. Consider working with one to ease the application process and save time.
Navigating the complexities of KRA PIN registration as a non-Kenyan can be challenging. At Gichuri & Partners, we simplify the process for you. Let our expert team guide you through the process to ensure efficiency and compliance. Contact us to get started!
