This week saw Kenyans who love the last-minute adrenaline rush to file their returns and avoid KRA penalties. Here are the repercussions if you didn’t manage to file your individual income KRA returns.
The Kenya Revenue Authority (KRA) gives Kenyans 6 months starting from January to June 30 each year, to file their returns for the previous year.
According to the taxman, it is an offense not to file your income tax returns by the due date. Whether employed or unemployed, you should file your returns. Unemployed individuals can file nil returns using the same system.
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Failure to file your income tax attracts a penalty of “5pc of the tax due and a late payment interest of 1pc per month on the unpaid tax until the tax is paid in full.”
Late filing is also an offense and attracts a penalty. whichever is higher between, 5pc of the tax due or Sh2,000.
When you fail to file your returns, KRA sends you an email from KRA requiring you to pay your penalties, failure to do follow instructions in the email within a week or so further attracts a penalty.
Kenyans, however, have the option of applying for a waiver after filing their returns or paying the penalty.