This archive report was first published on 26 June 2021.
With the deadline for filing 2020 annual tax returns just around the corner, the Kenya Revenue Authority (KRA) is reminding taxpayers of the importance of compliance.
According to the KRA, a tax return is a declaration made to the Commissioner of the income earned or generated over a given period. Where no income was earned or generated during the period, a taxpayer is required to submit a Nil return.
As of mid-June, KRA had received over 3.6 million tax returns, a 25% increase compared to the same period last year. However, there is still a significant number of taxpayers who have yet to comply.
The return filing deadline of 30th June 2021 applies to all individual taxpayers and business entities whose accounting period runs from January to December. Individuals with employment income require P9 forms issued by their employers to file their tax returns.
Employers are urged to issue their employees with P9 forms in good time to facilitate their filing of returns. Those with business income should have their books of accounts and financial statements ready for reference when filing their returns.
KRA has made deliberate efforts to simplify the process of filing tax returns for enhanced user experience. Submission of tax returns is done online on KRA's iTax platform (http://itax.kra.go.ke). Taxpayers with employment income only can use the simplified web-based pre-populated income tax return on iTax to file their returns.
Failure to file a tax return within the stipulated timelines amounts to non-compliance, which comes with a penalty as provided in the Tax Procedures Act 2015. Individual taxpayers who submit their returns after the 30th June deadline will be liable to a penalty of Kshs. 2,000 or five per cent of the tax due, whichever is higher.
Non-individual entities are liable to a penalty of Kshs. 20,000 or five per cent of the tax due, whichever is higher, for late filing of their income tax returns. With KRA's support and the ample time provided for under the tax laws, these penalties are avoidable.
As a reminder, the KRA contact centre is now accessible from 6.00am to 10.00pm on weekdays, and 9.00am to 4.00pm over the weekends. The contact centre contacts are 0711 099 999 for calls and [email protected] for emails.
