Africa-Press – Kenya. With just nine days remaining before the June 30 deadline for Kenyans to file their 2022 income tax returns, do you know why it is important to file your taxes?
Well! Every person (individual, company, partnership, etc.) with a KRA PIN is required to submit a return of income to the KRA Commissioner of Domestic Taxes by the last day of the sixth month after the end of their income year, as per Section 52B of the Income Tax Act (CAP 470).
Income Tax Return is a declaration made by a person showing all income earned from all sources of income during a tax period (usually a year) and the self-assessed tax paid during that year of income.
In this case, you are required to file returns for the tax period of 1st January to 31st December 2022. Here’s why filing taxes is important: Failure to file tax returns or filing them late can lead to penalties and interest charges:
Individuals who file late are subject to a late filing penalty of 5% of the tax due or a minimum of Sh2,000, whichever is higher. Non-individuals (companies, organizations, etc.) face a late filing penalty of 5% of the tax due or a minimum of Sh20,000, whichever is higher.
Additionally, late payment interest at a rate of 1% per month is charged until the tax is fully settled. By law, every Kenyan with taxable income is required to self-assess, disclose their annual income, and pay any taxes owed by filing tax returns. Submission of income tax returns is an online process done via iTax.
If you need assistance with filing your taxes, KRA provides several channels for support: Remember, fulfilling your tax obligations not only ensures compliance with the law but also contributes to the development and well-being of the nation.
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