How To Pay KRA Penalties Via Mpesa and Banks. Full Details Below.
What is the penalty for late filing and paying?
Date: Individual Income Tax Returns should be filed on or before 30th June of the following year.
Penalty on late filing: Whichever is higher between, 5% of the tax due or Kshs. 2,000.
Penalty on late payment: 5% of the tax due and a late payment interest of 1% per month on the unpaid tax until the tax is paid in full.
KRA Offence and Penalties in Kenya
Below are KRA Possible Offence and the Penalty all defaulters must pay.
- Failure to deduct PAYE, account for it, or to submit a certificate upon request.
Penalty – Whichever is greater than, 25% of the amount of the tax involved or Ksh. 10,000.
- Failure to deduct or pay Withholding Tax.
Penalty – 10% of the amount of the tax involved, up to a maximum of Kshs. 1 million.
- Failure to pay Stamp Duty.
Penalty – Additional 5% of the payable duty for every quarter, from the date of the Instrument.
- failure to pay Excise Duty or VAT.
Penalty – whichever is greater than, 5% of the amount of the tax due or Ksh. 10,000.
- Failure to pay tax on the due date.
Penalty – Additional 20% of the tax involved is charged.
- Failure to file annual returns by the due date.
Penalty – Additional tax equal to 5% of the normal tax, or Ksh. 10,000.
- KRA PIN-related offense.
Penalty – Ksh. 2,000 per offence.
How To Pay KRA Late Tax Returns penalty Through Mpesa
Follow the step guide for a successful Payment through Mpesa.
- Log into your KRA web portal account through this link https://itax.kra.go.ke/
- Select payment registration under the payment drop-down menu
- Fill the required details on the payment information page, submit and download the E-slip which will have a PRN ( Payment Registration Number )
- You will use this PRN as your account number when making the payment using Mpesa. The PayBill number you will use is 572572
Afterwards generating your account number through the steps above, follow the guide below to finalize your transaction.
- Go to your Mpesa Menu
- Select Lipa na Mpesa
- Select Paybill
- Enter 572572 as the business number
- Enter the PRN as your account number
- Enter the amount you want to pay
- Enter your Mpesa pin and press OK
- You will receive a transaction confirmation message from Mpesa.
See Also; How to file KRA iTax Returns Online
IMPORTANT
You can, either way, use the downloaded E-slip as your deposit slip for Bank payments.
Need Assistance?
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