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.