Today is the last day to file your tax returns. The iTax filing system accepts various types of returns such as income tax related to the resident individual, corporates, partnership, and indirect tax such as VAT and excise. You can choose the right type of iTax returns and file based on your obligation.
The Kenya Revenue Authority gives Kenyans a six-month period starting from January to June 30 each year, to file their returns for the previous year. Only a small number of people file their individual income tax months before the deadline. The month of June is characterized by a rush and panic as more people try to beat the deadline. It is not uncommon for KRA’s system to crush on the date of the deadline.
Unfortunately, some members will not make it to file their returns by the end of today. And if you fall in this bracket, you may be wondering what kind of penalties you will attract. Well, according to the KRA website, 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.
Read: How To File Your 2020 KRA Tax Returns
Failure to file your income tax attracts a penalty of “5% of the tax due and a late payment interest of 1% 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, 5% of the tax due or Kshs. 2,000.” If you have ever failed to file your returns on time, you might have received some emails from KRA alerting you about the penalties.
Once you get an email from KRA requiring you to pay your penalties, note that failure to do so (normally within 10 days) also attracts a penalty. You have the option of applying for a waiver after filing your returns or paying the penalty.
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