What You Should Know About KRA Penalty For Not Filing Returns

Kenya Revenue Authority (KRA) is an agency of the Kenyan government which is responsible for the collection, assessment, and accounting of all the revenues that are due to the government of Kenya in accordance to the law of Kenya. This article will help you to pay one of the taxes which is the individual return. Go through the below-mentioned information properly.

KRA Tax Penalties

The most common question that strikes the mind of the taxpayers when they miss the last date of the tax fee submission is “what is the penalty for missing to file tax returns”. Before giving you the details of the KRA penalty for late returns, it is better you should know about the form filling date first. Scroll down and check the details on the penalty for not filing KRA tax returns.

KRA iTax Penalty – Points On Which Penalties Are Issued

All the registered taxpayers are required to pay the KRA paye late filing fines by the Kenyan law for doing late submission of the tax return. The following are the measures that are needed to be enforced for enhancing compliance for certain offenses.

1. Failure in registering- a penalty fine of Ksh.20000 (not exceeding the amount) or imprisonment for a period not exceeding six months or both
2. Failure in submitting a return or after the due date or submission of a return without paying the due tax – a default penalty of Ksh.10,000 or the 5% of the tax due whichever is the higher plus additional 2% interest per month compounded.
3. Enforced registration- a default penalty of 100,000 KSHS is charged
4. Failure of keeping the proper records – a default penalty of between Ksh 10,000 to Ksh 200,000
5. On fraudulent accounting – a fine not exceeding Ksh 400,000 or doubling the tax evaded whichever is greater between the two, or an imprisonment for a period not exceeding three years or both
6. Obstruction or hindrance of authorized officers
7. Failure in issuing tax invoice – an automatic penalty of not less than Ksh 10,000, but not exceeding an amount of Ksh 100, 000
8. Uttering false statements
9. Failure to display a certificate of registration – a default penalty of Ksh 20,000 and a fine not exceeding Ksh 200,000 or imprisonment for a term not exceeding 2 years or both.
10. Charging tax when not registered- tax shown on such invoice is due to the Commissioner within 7days
11. Failure to pay tax or late payment
12. Failure to comply with VAT regulations.

Noted Below:

Offenses for which no specific penalty is provided, a general penalty of fine not exceeding Ksh 500,000 or imprisonment for a period not exceeding three years or both is applicable.

How To Pay KRA Late Filing Penalties For Individual Return

After you got to know about the KRA penalty for not filing individual returns, we understand that it has become more important for you to know how to pay the penalty. Below there are few easy steps to KRA pay late filing fines –

Step 1: To pay the late submission penalties, first, open the KRA portal.

Step 2: Click on the “Apply for your Pin” button in the right middle services list. And if you have already applied for your personal pin, simply type it in the “Enter PIN/User ID” field.

Step 3: In your personal KRA Kenya iTAX account find the special residential rental income tax return form. Now click on the download button and print the form and if you want to pay the bill online you will have to send the money through MPESA.

Step 4: Fill out the form carefully ensuring all mandatory fields are filled with genuine information to avoid further complication.

Step 5: After filling the form submit it and send it. If you are doing the filling up manually then simply upload the finished document in the KRA portal.

Step 6: After the form has been submitted, you can generate an electronic payment slip. Check the electronic payment carefully before starting the payment procedure. Once you have got the payment slip you can choose the payment method. You can either pay in any of the KRA bank partners or with MPESA online platform.

Step 7: If you have chosen the MPESA payment method, you should have your KRA paybill number (572572) and your personal account number. The personal account number is a payment registration number that you will get in the upper right corner of the electronically generated slip.

Step 8: After that, you will get a message on the successful confirmation of the payment.

Noted Below:

If you have followed all the above steps but still facing problems in doing the payment contact the KRA support team on their website home page.

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