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