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How to Deregister from KRA: Complete Guide to Cancelling Your PIN and Tax Obligations in Kenya (2026)

Step-by-step process for legally cancelling your KRA PIN, removing tax obligations, and meeting compliance requirements through iTax portal

Taxpayers in Kenya seeking to discontinue their registration with the Kenya Revenue Authority face a structured process governed by tax regulations and administered through digital platforms. Understanding when deregistration applies, the requirements involved, and the proper procedures ensures compliance while avoiding penalties.

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What Is KRA Tax Deregistration?

Tax deregistration refers to the official process of cancelling a Personal Identification Number (PIN) issued by the Kenya Revenue Authority or removing specific tax obligations associated with that PIN. This legal procedure allows individuals and businesses to formally end their taxpayer status when circumstances warrant such action.

The Kenya Revenue Authority provides this service to maintain accurate taxpayer records, reduce administrative burden on those no longer required to file returns, and ensure the tax register reflects current economic activity.

Deregistration can be partial, affecting only certain tax heads while maintaining the PIN for other obligations, or complete, involving full cancellation of the taxpayer identification number and all associated responsibilities.

When Should You Deregister from KRA?

Several circumstances make taxpayers eligible for deregistration, each requiring specific documentation and justification:

Business Closure or Cessation

Entrepreneurs who have permanently closed their businesses should deregister to avoid ongoing compliance requirements for inactive entities. This applies to sole proprietorships, partnerships, and companies that have completed liquidation or wound up operations.

Continuing registration for a non-operational business creates unnecessary filing obligations and potential penalties for non-compliance with return submission deadlines.

Employment Termination

Employees whose income tax obligations were managed through Pay As You Earn (PAYE) deductions may seek to cancel this specific tax obligation after leaving formal employment, particularly if transitioning to business income or exiting the workforce entirely.

However, individuals should carefully consider whether they might return to employment or have other income sources requiring PIN retention before pursuing full deregistration.

Permanent Emigration from Kenya

Kenyan residents relocating abroad permanently with no intention of maintaining income sources or business interests in the country can apply for deregistration based on emigration status.

This category requires proof of permanent residence establishment in another jurisdiction and confirmation that no Kenyan-source income will continue accruing.

Erroneous or Duplicate Registration

Taxpayers who accidentally registered multiple PINs or obtained registration without valid reason can request cancellation of the erroneous identification numbers.

KRA systems sometimes generate duplicate registrations during system migrations or when individuals register through multiple channels, necessitating cleanup to maintain accurate records.

Death of Taxpayer

Executors or administrators of deceased persons’ estates should deregister the PIN after settling all tax obligations and filing final returns, preventing future compliance notices.

Minors Incorrectly Registered

Parents or guardians who registered minors without qualifying income sources can seek deregistration until the child reaches working age or generates taxable income.

Critical Requirements Before Deregistration

The Kenya Revenue Authority enforces strict conditions that must be satisfied before approving deregistration requests. Failure to meet these prerequisites results in application rejection.

Tax Compliance Status

All outstanding tax returns must be filed and submitted before deregistration will be processed. This includes:

Income Tax Returns: Annual returns for all years the PIN was active, including the partial year before deregistration.

VAT Returns: Monthly or quarterly Value Added Tax returns for VAT-registered businesses through the final trading period.

PAYE Returns: Employer payroll tax returns covering all employment periods.

Withholding Tax Returns: Returns for any tax withheld on payments made to suppliers, contractors, or service providers.

The iTax system automatically checks compliance status and blocks deregistration applications when unfiled returns are detected.

Outstanding Tax Liabilities

All tax debts, including principal amounts, penalties, and interest charges, must be paid in full before deregistration approval. KRA maintains a blocking mechanism preventing PIN cancellation while any balance remains unpaid.

Taxpayers struggling with large tax debts should explore installment payment arrangements with KRA’s Debt Management Department before pursuing deregistration.

Pending Audits or Investigations

Active tax audits, investigations, or disputes suspend deregistration eligibility until resolution. KRA must complete examinations and issue final assessments before allowing taxpayer exit from the system.

Final Returns Submission

A final return covering the period up to cessation of business or employment must be filed, clearly marked as the last filing for that tax obligation.

Step-by-Step Guide to KRA Deregistration Through iTax

The Kenya Revenue Authority’s iTax portal provides the primary channel for submitting deregistration applications, offering a streamlined digital process accessible from any internet-connected device.

Step 1: Access the iTax Portal

Navigate to the official KRA iTax system at https://itax.kra.go.ke using a web browser on your computer or mobile device.

Ensure you’re accessing the genuine KRA website by verifying the URL and looking for security indicators like the padlock symbol in the address bar.

Step 2: Log Into Your Account

Enter your registered KRA PIN in the username field and your confidential password in the password field, then click the login button.

Security Tips:

Never share your iTax password with anyone, including individuals claiming to be KRA officials
Use a strong, unique password combining letters, numbers, and special characters
Log out completely after completing your session, especially on shared computers
Change your password immediately if you suspect unauthorized access

If you’ve forgotten your password, use the “Forgot Password” link to initiate the recovery process through your registered email address or mobile number.

Step 3: Navigate to Registration Services

After successful login, locate the main menu and hover over or click the “Registration” tab, which contains all PIN and tax obligation management functions.

From the dropdown menu that appears, select either:

“PIN Cancellation” if seeking complete deregistration
“Tax Obligation Cancellation” if removing specific tax heads while maintaining your PIN

The appropriate selection depends on your specific circumstances and future tax obligations.

Step 4: Select Tax Obligations for Cancellation

The system displays all tax obligations currently linked to your PIN, which may include:

Income Tax (for self-employed individuals and rental income)
Pay As You Earn (PAYE) for employers
Value Added Tax (VAT) for registered businesses
Withholding Tax (WHT) for entities making certain payments
Turnover Tax for small businesses
Excise Duty for specific product manufacturers
Customs obligations for importers/exporters

Check the boxes next to each tax obligation you wish to cancel. For complete deregistration, select all listed obligations.

Step 5: Provide Detailed Deregistration Reasons

KRA requires comprehensive explanation of why deregistration is being sought. Select the applicable reason from the dropdown menu:

Common Deregistration Reasons:

Business Cessation: Indicate permanent closure of business operations, providing the exact date trading stopped.

End of Employment: Specify employment termination date and whether transitioning to self-employment or exiting the workforce.

Emigration: Confirm permanent relocation outside Kenya, including destination country and departure date.

Duplicate Registration: Explain circumstances leading to multiple PINs and identify which PIN should remain active.

Death of Taxpayer: Provide date of death and relationship to deceased (for executors/administrators).

Erroneous Registration: Describe why the PIN was registered without valid reason.

The narrative explanation box allows up to 500 characters for detailed context. Provide specific dates, circumstances, and relevant details supporting your request.

Important: Information provided in this section undergoes verification by KRA officials. Inaccurate or misleading statements can result in application rejection and potential penalties for providing false information.

Step 6: Verify Personal and Business Details

The iTax system populates a confirmation screen displaying:

Full registered name (individual or business)
KRA Personal Identification Number
Registered email address
Mobile phone number
Business registration number (if applicable)
Tax obligation start dates

Carefully review all displayed information for accuracy. Any discrepancies should be corrected through the “Update Registration Details” function before proceeding with deregistration.

Click the checkbox confirming that all details are correct and current.

Step 7: Confirm Address Information

The system displays your registered postal and physical addresses. Verify or update:

Postal Address:

Post Office Box number
Postal code
Town/City

Physical Address:

Building name or number
Street name
Estate or locality
County and sub-county

Accurate address information ensures KRA can send official correspondence regarding your deregistration application, including approval confirmations or requests for additional documentation.

Click “Next” after confirming address details are complete and current.

Step 8: Upload Supporting Documentation

Depending on your deregistration reason, KRA may require supporting documents to verify your application:

Required Documents by Category:

Business Closure:

Certificate of cessation/dissolution from business registrar
Final audited accounts
Board resolution approving closure (for companies)
Notice of business closure to landlord or local authority

Employment Termination:

Letter of termination from employer
Final payslip showing end date
Clearance certificate from former employer

Emigration:

Copy of permanent residence permit from destination country
Flight confirmation or departure documentation
Letter from employer abroad (if applicable)

Death:

Certified copy of death certificate
Letters of administration or grant of probate
Identification of executor/administrator

Duplicate Registration:

Explanation letter detailing circumstances
Identification of correct PIN to retain

Upload documents in PDF, JPEG, or PNG format, with each file not exceeding 2MB in size. Ensure scanned documents are clear and legible.

Step 9: Submit Application for Processing

After completing all required fields and uploading necessary documentation, review the entire application summary displayed on the final screen.

Verify that:

All selected tax obligations are correct
Deregistration reason accurately reflects your circumstances
Personal details are current
Required documents are attached

Click the “Submit” button to transmit your application to KRA for review and processing.

Step 10: Receive Acknowledgment Receipt

Upon successful submission, the iTax system generates an acknowledgment receipt containing:

Application reference number
Submission date and time
Summary of deregistration request
Expected processing timeline

Save or print this acknowledgment for your records. The reference number allows you to track application status and communicate with KRA regarding your request.

After Submission: What Happens Next?

KRA Review Process

Revenue officers assigned to your taxpayer account receive the deregistration application and begin verification procedures:

Compliance Check: Systems automatically verify that all returns have been filed and no outstanding liabilities exist.

Document Review: Officers examine submitted supporting documents for authenticity and relevance to the stated deregistration reason.

Physical Verification: For business closures, KRA may conduct site visits to confirm cessation of operations.

Approval Decision: Based on verification findings, officers approve or reject the application.

Processing Timeline

Standard processing time for straightforward deregistration applications ranges from 7 to 14 business days from submission date.

Complex cases involving large businesses, multiple tax obligations, or incomplete documentation may require 21 to 30 days for thorough review.

Application Status Tracking

Monitor your application progress through iTax:

Log into your iTax account
Navigate to “Registration” menu
Select “View Applications”
Locate your deregistration application by reference number
Check current status (Pending, Under Review, Approved, Rejected)

Possible Outcomes

Approval: KRA issues a deregistration certificate confirming PIN cancellation or removal of specific tax obligations. This document is accessible through iTax for download and printing.

Rejection: The application is declined with reasons provided. Common rejection grounds include unfiled returns, outstanding taxes, or insufficient documentation. Address the identified issues and resubmit.

Query Raised: KRA requests additional information or documentation before making a final decision. Respond promptly through iTax or by visiting the designated KRA office.

Important Considerations Before Deregistering

Impact on Future Tax Obligations

Deregistration eliminates your ability to file returns, claim refunds, or conduct transactions requiring a valid KRA PIN. Consider future implications:

Employment: Most formal employers require valid PINs for hiring. Deregistered individuals must re-register if returning to employment.

Business Opportunities: Tendering for government or corporate contracts mandates tax compliance certificates, requiring an active PIN.

Banking Transactions: Certain banking services and loan applications request KRA PIN verification.

Property Transactions: Real estate purchases and sales involve stamp duty payments requiring valid PINs.

Alternative to Full Deregistration

Rather than complete PIN cancellation, consider removing only specific tax obligations while maintaining your PIN for potential future needs:

Cancel PAYE obligation after leaving employment while retaining PIN for rental income tax
Remove VAT obligation after dropping below registration threshold while keeping income tax active
Deactivate business-related tax heads while maintaining personal income tax for employment

This approach preserves your taxpayer identity without ongoing compliance burdens for inactive tax categories.

Re-registration Requirements

If circumstances change after deregistration, requiring a new PIN:

New Application: Complete fresh registration through iTax as a first-time taxpayer Documentation: Provide current identification and justification for registration Processing Time: Allow 3-5 business days for new PIN issuance Loss of History: Previous tax history under the cancelled PIN becomes inaccessible

Common Deregistration Challenges and Solutions

Challenge 1: System Shows Outstanding Returns

Problem: iTax indicates unfiled returns preventing deregistration, but you believe all returns are filed.

Solution:

Download your tax obligation history from iTax
Verify which specific returns are flagged as outstanding
File any genuinely missing returns immediately
If returns were filed but not reflected, visit KRA offices with filing acknowledgments

Challenge 2: Penalties Block Deregistration

Problem: Late filing penalties or interest charges create outstanding liabilities blocking application.

Solution:

Request penalty waiver through iTax if you have valid reasons (illness, system challenges)
Arrange installment payment plan with KRA if unable to pay full amount immediately
Once payment arrangement is active, deregistration may be approved

Challenge 3: Rejected Application Without Clear Reasons

Problem: Application is rejected with vague or unclear justification.

Solution:

Visit your designated KRA Taxpayer Service Centre
Request detailed explanation from assigned revenue officer
Obtain written clarification of required corrective actions
Resubmit with comprehensive documentation addressing concerns

Challenge 4: Business Closed But Assets Remain

Problem: Business ceased trading but retains assets like property or vehicles registered under the PIN.

Solution:

Transfer assets to personal ownership before deregistering business PIN
File necessary asset transfer documentation with relevant authorities
Ensure Capital Gains Tax obligations are settled on asset disposals
Obtain clearance confirming no pending issues before deregistration

Tax Obligations After Successful Deregistration

Deregistration does not automatically eliminate all tax responsibilities:

Historical Liabilities

KRA retains authority to audit tax periods before deregistration for up to five years after the last filing. Maintain complete records of:

Filed tax returns and acknowledgments
Payment receipts for all taxes paid
Financial statements and supporting documents
Correspondence with KRA

One-Time Tax Events

Certain transactions trigger tax obligations regardless of deregistration status:

Capital Gains Tax: Selling property after deregistration requires CGT payment and filing, necessitating temporary PIN reactivation or new registration.

Inheritance Tax: Beneficiaries receiving substantial inheritances may face tax obligations requiring registration.

Withholding Tax: Payments received from Kenyan sources may have WHT deducted, creating potential refund claims requiring PIN reactivation.

Frequently Asked Questions About KRA Deregistration

Can I deregister if I have pending tax refunds?

No. KRA requires all refund claims to be processed and paid before approving deregistration. Alternatively, withdraw refund claims if the amounts are minimal and you prioritize quick deregistration.

Does deregistration affect my credit score?

Deregistration itself doesn’t directly impact credit ratings. However, unpaid tax debts reported to Credit Reference Bureaus affect creditworthiness regardless of registration status.

How long after business closure should I deregister?

File your final tax return for the period up to closure, then submit deregistration application immediately. Delaying creates ongoing compliance obligations for an inactive entity.

Can I reverse deregistration if I change my mind?

No. Once approved, deregistration is permanent for that PIN. You must apply for a completely new PIN if tax obligations resume, losing continuity of your tax history.

What happens to my eTIMS device after deregistration?

For VAT-registered businesses using electronic Tax Invoice Management System devices, return the equipment to KRA after deregistration approval. Failure to return devices may block final approval.

Is there a fee for deregistration?

No. KRA does not charge any fees for processing deregistration applications. All services are provided free of charge through the iTax portal.

Conclusion: Making an Informed Deregistration Decision

Cancelling your KRA PIN or removing tax obligations represents a significant administrative action with lasting implications for your financial and business activities in Kenya. The decision requires careful consideration of current circumstances, future plans, and regulatory compliance requirements.

Before proceeding with deregistration:

Ensure genuine eligibility based on business closure, employment termination, or other valid reasons
Complete all outstanding tax filings and settle any liabilities
Consider whether maintaining your PIN with cancelled obligations better serves long-term interests
Gather comprehensive documentation supporting your application
Follow the iTax process meticulously, verifying accuracy at each step

For taxpayers with complex situations involving multiple businesses, substantial assets, or uncertain future tax obligations, consulting with a registered tax advisor provides valuable guidance tailored to individual circumstances.

The Kenya Revenue Authority’s digital systems have simplified deregistration procedures, but compliance with prerequisite requirements remains non-negotiable. Approach the process methodically, maintain detailed records, and communicate openly with KRA officials to ensure smooth processing.

Disclaimer: This guide provides general information about KRA deregistration procedures based on regulations current as of January 2026. Tax laws and administrative processes may change. For specific advice regarding your unique situation, consult KRA directly through their helpline at 0711-099-999 or visit www.kra.go.ke for the latest guidance and requirements.