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How To Avoid Kenya Revenue Authority Penalties (Kra)

Kenya Revenue Authority is an agent of the government of Kenya which helps in collection of revenue. It's aids in helping individuals on filing returns. There are many types of taxes such as advance tax, value added tax, excise duty, stamp duty, rental income tax, income tax company, individual income tax, PAYE, non individual income tax, income tax partnership among many others. The law dictates that each and every person is supposed to declare and file returns accordingly. The following are various taxes and ways on how to avoid tax imposed by the Kenya Revenue Authority.

1.Pay as you earn tax (PAYE) - an individual or a company who has employees is supposed to file returns before 9th of every month. If you have registered for PAYE and you company is not operating remember to always file a nil return before the stipulated time. The penalty for late filing for this obligation is Ksh 10000.

2.Income Rental tax - an individual who has registered for this obligation is supposed to file returns before 20th of every month. The penalty for late filing is Ksh 2000.

3.Individual Resident income tax - Each and every individual who owns a kra pin is supposed to file for this obligation between 1st January and 30th June every year. The penalty for late filing is Ksh 2000. If you're not employed always file a nil return.

4.Value added tax - this applies to those who operate business. Vat is supposed to be filed every month before 20th. Late filing attracts a penalty of Ksh 10000.

5.Turnover tax - thus is usually for those individuals with businesses who sales amount to Ksh 1000000 per year. Turn over usually applies to only 1% of the total sales payable before 20th of each month.

6.Income tax company - every individual who owns a company is supposed to file returns yearly before 30th June every year, a late filing attracts a penalty of Ksh 10000.

According to Kenya Revenue Authority laws, you should always maintain honesty while filing returns on your self assessment module. If you're not employed or your business is not in operation remember to always file a nil return to avoid penalties of which ever obligation as required by the law.

Content created and supplied by: @alferdefrank (via Opera News )

Kenya Kenya Revenue Authority

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