Penalties

As a Kenyan taxpayer, there are various penalties that you will be slapped with by the taxman, for various offenses committed in the course of submitting your taxes.

For Late payment of tax, you are charged 20% penalty. This will be charged just once, 2% interest per month on any amount that remains unpaid. For Underpayment/under declaration, you will pay a 20% penalty and 2% interest per month. Under declaration could also attract up to 200% penalty on the under declared amount.

For Non-payment of taxes, where no deduction and declaration is made could attract penalty of up to 200% and or a fine or imprisonment. Non-payment where declaration is made attracts 20% penalty and 2% interest per month until the amount is paid in full.

Late /Non return - submission bears a default penalty of 5% default penalty or KES10, 000 (Companies) and KES.1, 000 (individual) whichever is greater. Failure to deduct, account and pay will see you charged 25% of tax or minimum KES.10, 000.

Exemptions

 Exemption is an authority granted to a person not to pay tax on an otherwise, taxable income. To obtain tax exemptions, you will be required to be of public character and established solely for:

• Advancement of education or religion.
• Alleviation of distress or relief of poverty to the public.
• Be of benefit to Kenya residents.

Double Taxation