Title Penalties
Description

The due date for filing a PAYE return and payment of the taxes deducted from employees is 9th of the following month. Where an employer does not observe the due dates, the penalties below shall apply:


1.  Late filing


    •     The higher of 25% of the tax due or KShs. 10,000.


2.  Late Payment


    •     Penalty of 5% of the tax due; and


    •     Late payment interest at 1% interest per month or part of a month on the unpaid tax until the tax it is paid in full.


3.  Penalty for failure to deduct and account for tax 25% of Tax Involved or KShs. 10,000.00 whichever is higher.
Category More about PAYE