The Kenya Revenue Authority (KRA) has unveiled draft guidelines aimed at clarifying the tax procedures for managing assets of deceased individuals. The new framework focuses on deregistering the deceased person's KRA Personal Identification Number (PIN) and registering a separate estate PIN to oversee ongoing tax obligations.

Purpose of the Estate PIN

The estate PIN is designed to facilitate tax compliance during the administration of an estate, ensuring that income from inherited property, businesses, or investments is properly accounted for until assets are distributed to beneficiaries. This PIN is distinct from the deceased person's original PIN and is issued specifically for the estate while succession matters are resolved.

Who Can Apply and Required Documents

Applications to deregister a deceased person's PIN or to register an estate PIN can be made by legal representatives, executors named in wills, court-appointed administrators, or family members with legal authority. To proceed, applicants must provide:

  • A certified copy of the death certificate
  • Legal documentation verifying their authority, such as a will, Grant of Probate, Letters of Administration, Certificate of Confirmation of Grant, or Gazette Notice
  • Identification documents for the legal representative
  • Evidence of estate registration and asset lists, where applicable

Application Process and Timeline

Submissions can be made electronically via KRA's iTax platform or in person at KRA offices. The authority will verify all documents and legal authority before deregistering the deceased's PIN and issuing an estate PIN if required. The process is expected to take up to 60 days, with applicants notified through their official email addresses upon completion.

Impact on Families and Estate Administration

These guidelines aim to simplify tax administration for families and estate managers by providing a clear, standardized approach. They address the ongoing tax responsibilities of estates generating income posthumously, reducing delays and disputes related to unclear legal authority. By distinguishing between the deceased person's PIN and the estate PIN, KRA seeks to maintain accurate records and enhance compliance during estate succession.