KRA PIN and Kenyan tax when you live in Canada Two tax systems, one simple plan.

1. Do I still need a KRA PIN?

KRA says you need a Personal Identification Number (PIN) "if you expect to earn any income from Kenya", and that this applies to residents and non-residents. You also need a PIN for many transactions in Kenya, including:

• buying, registering or transferring land, and paying land rates;
• opening a Kenyan bank account;
• registering a vehicle, a business name or a company;
• power and water connections and building plans.

If you don't have a PIN yet, you can register online on iTax (choose Individual, then Online Form).

Sources: KRA, "KRA PIN & tax obligations" (diaspora); KRA Diaspora Information Pack (PDF, 2019); KRA, "How to register for a KRA PIN"

2. Filing returns, including nil returns

• Everyone with a PIN files. KRA's diaspora page says every PIN holder must file and pay through iTax by the due date.
• No Kenyan income? File a nil return. KRA: "If you have no income to declare, you are required to file a NIL return."
• When: any time from January 1 to June 30 of the following year.
• Late filing: 5% of the tax due or KSh 2,000, whichever is higher. Late payment adds 5% of the tax due plus interest of 1% a month.

KRA encourages Kenyans abroad to ask the nearest Kenyan mission for help filing. In Canada that is the High Commission in Ottawa.

Sources: KRA, "Individual income tax"; KRA, diaspora tax obligations

3. Making a PIN dormant or cancelling it

KRA lets you ask to be relieved of a tax obligation for a set period (dormancy), or to cancel a PIN, through iTax:

• Dormancy: log in to iTax, open the Registration menu, choose E-dormancy, pick the obligation, the period and your reasons, then submit.
• Cancellation: iTax, Registration menu, E-cancellation.

For both, KRA says you may be asked for supporting documents, and that you must keep filing returns until you receive an official reply. KRA doesn't publish advice on whether a Kenyan abroad should cancel a PIN, so think about land, bank accounts and future plans in Kenya first.

Sources: KRA, "PIN dormancy"; KRA, "PIN cancellation"

4. Rent from property in Kenya

• Non-resident landlords: KRA's withholding tax table lists residential rent paid to a non-resident at 30%. KRA says tax withheld from a non-resident with no permanent establishment in Kenya is a final tax, with no further declaration needed.
• Landlords resident in Kenya pay the monthly residential rental income tax (7.5% of gross rent since January 1, 2024) instead, if their rent is up to KSh 15 million a year. Above that, it goes in the annual return.

KRA's own pages give different figures for the monthly rental income band and due date. If you're not sure which rule applies to you, ask KRA before you pay.

Sources: KRA, "Everything about withholding tax"; KRA, "Residential rental income"

5. What Canada expects

• Report your world income. The CRA says that once you are a resident of Canada, "you have to report your world income", which includes rent and other income from Kenya.
• Foreign tax credit. If you paid tax in Kenya on income you also report in Canada, you can generally claim a federal foreign tax credit (Form T2209).
• The Canada–Kenya tax treaty (signed April 27, 1983) is on Canada's list of treaties in force. It lets Kenya tax income from property in Kenya, and Kenyan tax on Kenyan income is generally deducted from the Canadian tax on it.
• Foreign property over $100,000. If the total cost of your specified foreign property is more than CAD $100,000 at any time in the year, you must file Form T1135. The CRA sets penalties for filing it late. Specified foreign property includes a rented-out house, shares or a bank account abroad. Property for personal use doesn't count.

Sources: CRA, newcomers' tax return; CRA, foreign tax credit; Finance Canada, tax treaties in force; CRA, Form T1135

Moving money between the two countries? See Sending money to Kenya from Canada.

6. Getting help

• KRA: +254 20 4 999 999 or +254 711 099 999, callcentre@kra.go.ke.
• In Canada: free tax clinics run by volunteers help people with modest incomes file Canadian returns. See the CRA's free tax clinics.
• For income or property in both countries, a tax professional who knows both systems is worth it.

Running a business in Canada too? See starting a small business: tax for HST and reporting business income here.

Quick answers

Do I need a KRA PIN if I live in Canada?

KRA says you need a PIN if you expect to earn any income from Kenya, whether you live there or not. You also need one for many transactions in Kenya, such as buying or transferring land, opening a Kenyan bank account, and registering a vehicle or a company.

Do I have to file a KRA return if I have no Kenyan income?

Yes, if you have a PIN. KRA says that if you have no income to declare, you must file a nil return. Returns are filed on iTax between January 1 and June 30 of the following year. Late filing costs 5% of the tax due or KSh 2,000, whichever is higher.

Is there a tax treaty between Canada and Kenya?

Yes. The Canada–Kenya Income Tax Agreement, signed on April 27, 1983, is on the Government of Canada's list of tax treaties in force. Under it, Kenyan tax paid on income arising in Kenya can generally be deducted from the Canadian tax on that income, subject to Canadian law.

Do I report Kenyan rental income to the CRA?

Yes. Once you are a resident of Canada, you report your world income, which includes rent from property in Kenya. You may be able to claim a foreign tax credit for tax paid in Kenya. If your foreign property costs more than CAD $100,000 in total, you may also need to file Form T1135.

General information from KRA and the Government of Canada, not tax advice. Tax rules and rates change; confirm with KRA, the CRA or a tax professional before you file or pay.

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