KRA office. PHOTO/Print
In Summary:
- The Kenyan government aims to boost tax revenue by ensuring compliance with KRA regulations.
- The Kenya Revenue Authority (KRA) outlines various tax offenses and their penalties for non-compliance.
The Kenyan government’s drive to enhance tax revenue and reduce loan dependency for funding government operations underscores the significance of adhering to Kenya Revenue Authority (KRA) tax regulations.
According to guidelines published on the KRA website, the authority lays out detailed regulations concerning tax offenses and the corresponding penalties for non-compliance.
Late filing of Pay as You Earn (PAYE) attracts a penalty equal to 25 percent of the tax due or Ksh 10,000, whichever is higher. Late PAYE payments incur a 5 percent penalty plus a monthly 1 percent interest.
Failure to deduct Withholding VAT and Withholding Rental Income Tax results in a penalty of 10 percent of the tax due. Late payments for Withholding Tax incur a 5 percent penalty.
Late submission of Monthly Rental Income Tax (MRI) for individuals incurs a 5 percent penalty of the tax due or Ksh 2,000.
For non-individuals, the penalty is 5 percent of the tax due or Ksh 20,000, whichever is higher. Late payment of MRI attracts a 5 percent penalty and a monthly 1 percent interest.
Late payment of Stamp Duty incurs a penalty of 5 percent of the duty payable.
Late filing of Excise Duty returns results in a 5 percent penalty of the tax due or Ksh 10,000, whichever is higher.
Late payment of Excise Duty Tax attracts a 5 percent penalty and a 1 percent monthly interest.
Late filing of VAT Returns incurs a 5 percent penalty of the tax due or Ksh 10,000, whichever is higher.
Late payment of VAT tax results in a 5 percent penalty and a monthly 1 percent interest.
Late filing of Income Tax company or partnership returns attracts a 5 percent penalty of the tax due or Ksh 20,000, whichever is higher.
Late payment of Income Tax for non-individuals incurs a 5 percent penalty and a 1 percent monthly interest.
Non-residents found guilty of late payment of Income Tax must pay 5 percent of the tax due and a 1 percent monthly interest.
Any KRA PIN-related offenses incur a Ksh 2,000 penalty per offense.