NAIROBI, Kenya, Feb. 20, 2025 /NS News/ — The Kenya Revenue Authority (KRA) has urged Kenyans who are yet to file their taxes to do so before the lapse of the deadline set for February 20, 2025.
In a brief notice on Thursday afternoon, the Authority announced huge penalties for Kenyans who would fail to remit their tax payments by today midnight.
KRA went ahead to list five taxes whose deadlines are due today, including the Value Added Tax (VAT). VAT is an indirect tax that is paid by the person who consumes taxable goods imported.
According to KRA, any person supplying or who expects to supply taxable goods with a value of Ksh5 Million or more in a year is required to pay VAT at the rate of 16 per cent.
President William Ruto filing his taxes at the KRA offices on May 26, 2023
President William Ruto filing his taxes at the KRA offices on May 26, 2023 PCS
The Authority also called on Kenyans to file their Turnover Tax (TOT) and the Monthly Rental Income (MRI) tax, whose deadlines are also due today at midnight.
Turnover Tax is levied on businesses whose gross turnover exceeds Ksh1,000,000 but does not exceed, or is not expected to exceed, Ksh25,000,000 during any year of income.
As per the Finance Act 2023, which became effective on July 1, 2023, Turnover Tax is payable at a rate of 3 per cent of gross sales and must be remitted by the 20th of every month.
Additionally, Kenyans were urged to promptly remit their Digital Service Tax (DST) and the Value-Added Tax on Digital Marketplace Supply, whose deadlines are set to elapse soon.
Kenyans seeking to file any of the five taxes were advised to visit the KRA portal, where they will be required to log into the system and file the necessary tax returns.
“Today is February 20, 2025, the deadline to file and pay the following taxes: Value Added Tax (VAT), Turnover Tax (TOT), Monthly Rental Income Tax (MRI), Digital Service Tax (DST) and Value Added Tax on Digital Marketplace Supply. Avoid penalties by filing and paying on time! Get started via itax.kra.go.ke/KRA-Portal,” KRA announced.
As per the regulations, any Kenyan who fails to remit VAT risks a penalty of Ksh10,000 or 5 per cent of the tax due, whichever is higher. Non-remittance of Turnover Tax attracts a similar penalty.
Non-payment of Digital Service Tax, which is a tax payable on income accrued from services offered through a digital marketplace, attracts a penalty of 1.5 per cent of the gross transaction.
Let me know if you need further adjustments! Below, I’ve also provided a summary of the penalties based on the information in the article and available Kenyan tax regulations for clarity:
Penalties for Failing to File Taxes by February 20, 2025 (KRA Regulations):
- Value Added Tax (VAT):
- Penalty for Late Filing: Ksh10,000 or 5% of the tax due, whichever is higher.
- Additional Notes: VAT is due monthly by the 20th (e.g., February 20, 2025, for January transactions). Late payment may also incur a 1% monthly interest on unpaid amounts.
- Turnover Tax (TOT):
- Penalty for Late Filing: Ksh10,000 or 5% of the tax due, whichever is higher.
- Additional Notes: TOT is payable at 3% of gross sales monthly by the 20th. Late payment incurs a 1% monthly interest on the unpaid tax.
- Monthly Rental Income Tax (MRI):
- Penalty for Late Filing: For individuals, Ksh2,000 or 5% of the tax due, whichever is higher; for non-individuals, Ksh20,000 or 5% of the tax due, whichever is higher.
- Additional Notes: MRI is due by the 20th of each month. Late payment incurs a 5% penalty plus 1% monthly interest on unpaid tax.
- Digital Service Tax (DST):
- Penalty for Non-Payment: 1.5% of the gross transaction value.
- Additional Notes: DST is levied at 1.5% on gross income from digital services, due by the 20th of the following month. Non-compliance may also lead to enforcement actions under the Tax Procedures Act.
- Value Added Tax on Digital Marketplace Supply:
- Penalty for Late Filing: Ksh10,000 or 5% of the tax due, whichever is higher (aligned with standard VAT penalties).
- Additional Notes: This tax, at 16% on digital marketplace supplies, is due by the 20th of the following month. Late payment incurs a 1% monthly interest.
These penalties reflect standard KRA regulations as of the latest updates and align with the article’s details. For precise application, individuals should consult the KRA portal or a tax professional, as enforcement may vary based on specific circumstances.
