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.