How Diasporans in Germany Can Avoid Filing KRA Tax Returns

The steps to putting your KRA PIN in dormancy

Well, this is a topic that has been giving many diasporans agonizing thoughts. The KRA PIN is now needed for everything, from opening a bank account, buying land, getting the ePassport, buying shares e.t.c.

Now having the PIN also comes with the burden of having to file your tax returns, failure to which you need to pay a KSh. 20,000 fine. So how can you avoid it legally?

Kenya and Germany have a Double Treaty Agreement, which makes the tips shared herein possible. You can read about the DTA here:  What you Need to Know on Double Taxation Regulation Between Kenya and Germany.

For all Kenyans living in Germany and earning no income in Kenya i.e. no rental income etc. You can make your KRA PIN dormant for the time period you are living in Germany and whenever you return to Kenya or start earning an income in Kenya, you can activate it.

How to apply for PIN dormancy:

  1. Login into system with PIN.
  2. Click on e-Dormance link from menu for opening e-Payment Registration Form.
  3. Select Applicant Type
  4. Enter Taxpayer PIN if Applicant Type is “Agent, Legal Representative and Next to Kin” is selected and Based on Taxpayer PIN Taxpayer Obligation get auto populated.
  5. Select Tax Obligation.
  6. Select Effective from date with respect to selected Tax Obligation.
  7. Enter Effective to Date with respect to selected Tax Obligation.
  8. Select Reason for Dormance.
  9. If Reason “Other” is selected then enter descriptive reason.
  10. Click on Submit button to submit the data.
  11. Click on Back button to go to Home page.

If you prefer listening to someone explain it instead, here’s Rina Hicks from Moneywise:


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