Learn About Compliance
What Penalties are Charged on Tax Offences?
Tax offences can attract punitive penalties and interest.
These include:
Offence - Late filing of Pay-as-you-earn (PAYE)
Penalty - 25% of the tax due or Kshs. 10,000, whichever is higher.
Offence - Late payment of PAYE tax
Penalty - 5% of the tax due and an interest of 1% per month
Offence - Failure to deduct Withholding VAT and Withholding Rental Income Tax
Penalty - 10% of the amount of the tax involved
Offence - Late payment of Withholding Tax (Withholding Income Tax, Withholding VAT, Withholding Rental Income Tax)
Penalty - 5% of the tax due
Offence - Late filing of MRI Returns
Penalty - 5% of the tax due or Kshs. 2,000 whichever is higher for Individuals or 5% of the tax due or Kshs. 20,000 whichever is higher for Non-Individuals
Offence - Late payment of MRI
Penalty - 5% of the tax due and an interest of 1% per month
Offence - Late payment of Stamp Duty.
Penalty - 5% of the duty payable
Offence - Late filing of the Excise Duty return
Penalty - 5% of the tax due or Kshs. 10,000, whichever is higher
Offence - Late payment of Excise Duty Tax
Penalty - 5% of the tax due and an interest of 1% per month
Offence - Late filing of the VAT Return
Penalty - 5% of the tax due or Kshs. 10,000 whichever is higher
Offence - Late payment of the VAT tax
Penalty - 5% of the tax due and an interest of 1% per month
Offence - Late filing of Income tax company or partnership returns
Penalty - 5% of the tax due or Kshs. 20,000 whichever is higher
Offence - Late payment of Income tax for Non-Individuals
Penalty - 5% of the tax due and an interest of 1% per month
Offence - KRA PIN-related offences.
Penalty - Ksh. 2,000 per offence.