Tax Administrative Penalties

Failure to register or de-register for tax purposes where required to do so by a tax law

Penalty of KES 100,000 per month or part thereof subject to a cap of KES 1million

Failure to keep, retain or maintain proper documents as required by a tax legislation

Penalty equal to 10% of the amount of tax payable subject to a minimum of KES 100,000

Late submission of PAYE returns

Penalty equal to 25% of the tax due or KES 10,000; whichever is higher

Late filing of any other tax return

Penalty of 5% of the amount of tax payable under the return subject to a minimum of KES 2,000 for individuals and Sh.20,000 for corporates
KES 1,000 per month for turnover tax

Failure to file any other document, other than a tax return

Penalty of KES 1,000 per day subject to a maximum penalty of KES 50,000

Tax avoidance

Penalty equal to 200% of the amount avoided by a taxpayer This penalty is not eligible for waiver by the Commissioner or the Cabinet Secretary

Fraudulent claim for a refund of tax

Penalty of 200% the amount of the claim under all tax laws

Offenses committed by KRA officers or persons required to act on Commissioner instructions

Fine not exceeding KES 2 million or to imprisonment for a term not exceeding 5years or to both

Offenses committed by tax agents such as participating in creation of tax avoidance or evasion schemes; acting as a tax agent illegally Fraudulent act of omission and commission in respect of a tax period

Fine equal to 200% of the amount of tax evaded or a fine of KES 5 million whichever is higher or to imprisonment for a term not exceeding 5 years, or to both Fine not exceeding KES 10 Million or 200% of the amount of tax evaded, whichever is higher, or imp

Failure to appear before the commissioner when required when the Commissioner is satisfied that the person committed an offense

KES10,000 in the case of an individual and KES 100,000 in any other case.

Late payment penalty- Individual return

5% of the tax due and a late payment of 1% per month on the unpaid tax until the tax is paid in full

Late payment penalty- corporates

Additional 20% of tax involved

Late filing of withholding tax return

Either 5% of the tax payable or twenty thousand shillings, whichever is higher

Failure to deduct or pay Withholding Tax

10% of the amount of the tax involved, up to a maximum of Kshs. 1 million

Failure to pay Stamp Duty

Additional 5% of the payable duty for every quarter, from the date of the Instrument

Failure to pay Excise Duty or VAT

Whichever is greater of, 5% of the amount of the tax due or Ksh. 10,000

KRA PIN-related offense

Ksh. 2,000 per offence