Some individuals or businesses might be wondering why they have to go through the hassle of sourcing and gathering documents to register for a KRA Pin and what the whole fuss is about. Asides from being mandated by numerous Kenyan Acts, there are some benefits attached to applying for a KRA Pin for yourself or your business.
First of all, who should have a KRA Pin? Based on the tax obligation option available to you, you should apply for a KRA Pin if you fall under any of the following categories:
- Business owner
- Employee
- Wish to perform certain transactions found in the lists below
- A beneficiary of rental income
- Seeking to apply for a HELB Loan
Now, the major reasons why you need a KRA Pin are:
- To file for and pay your taxes, you are required to have a KRA Pin
- The Kenyan law demands that you have a KRA Pin before you can carry out some transactions. The most popular transactions for which you need a KRA pin are:
- Registration of title and paying of land rent
- Deposit payments for power connection at Kenya Power and Lighting Company
- Registering motor vehicle and licensing under the Traffic Act
- Registering business names and companies by the business names and companies registrars.
- Applying for the Value Added Tax registration
- Importation of goods and Customs clearing and forwarding
