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How to Pay KRA Tax Penalties and Fines

Have you found yourself in a situation where you have to pay KRA tax penalties and fines? In these hard economic times, facing such a problem can be stressful and unbearable especially for low income earners. What is even more disturbing is that KRA tax penalties and fines are avoidable and unnecessary liabilities.

If you have found yourself in the list of KRA tax offenders, do not fret, you can still redeem yourself. We will guide you in this article on the steps to follow in order to clear your name from the KRA tax offenders’ list. You will also realize that you can easily pay your KRA TAX penulties using Mpesa

Kenya Revenue Authority (KRA) is the body mandated with revenue collection, assessment and accountability. It also holds the right to slap tax offenders with hefty tax penalties and fines

Tax Offenses as Outlined by KRA

KRA has outlined offenses that you must avoid so that you won’t have to attract unnecessary KRA tax penalties and fines. Different tax offenses attract different penalties and fines. Many Kenyans are well aware of the penalty on late filing of tax returns, but there are more tax penalties than just that.

You are likely to attract KRA tax penalties and fines if you:

  • Don’t file Pay-as-you-earn (PAYE) on time
  • Don’t pay PAYE tax on time
  • Fail to deduct Withholding Value Added Tax (VAT) and withholding Rental Income Tax
  • Delay payment of Withholding Tax
  • Do not file Monthly Rental Income (MRI) returns on time
  • Don’t pay MRI on time
  • Don’t pay Excise Duty Tax on time
  • Don’t file VAT Return on time
  • Delay payment of the VAT tax
  • Delay payment of Stamp Duty.
  • Delay filing of the Excise Duty return
  • Fail to file Income tax company or partnership returns on time
  • Fail to pay Income tax for Non-Individuals on time
  • Commit KRA PIN-related offenses.
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How to pay your KRA tax penalties

Steps To Follow When Paying KRA Tax Penalties and Fines with Mpesa
  1. With a computer or a mobile phone, go to KRA’s Itax portal (www.itax.kra.go.ke) and log in to your KRA account.
  2. While you are on that page, you will see a tab labelled “Payment Registration”. Click on it.
  3. Next, you will be taken to a simple form with your pre-filled details on it. Click “Next”.
  4. After that, you will be taken to yet another form with several drop down lists and pre-filled text fields. Edit them if necessary. Select your relevant tax details on the drop down lists such as: tax head, payment type, mode of payment and tax sub head. On the “payment type” drop-down list, select “additional assessment/penalty” option.
  5. Click “submit” button and you will be taken to a page to download an automatically generated electronic slip. This slip contains a code that you will use as the account number when paying for your KRA penalties and fines via M-Pesa.
  6. Now go to your M-pesa menu on your phone and choose “Lipa na M-pesa”  then “Paybill”. Enter 572572 as your business number. Now go to “Account number” option and enter the generated code on step 5 above as your account number.
  7. Input your due KRA tax penalty amount followed by your M-pesa pin.
  8. Double check to see if all the payment details are correct then confirm and send money.
  9. That’s it, you are done! Now just wait for a confirmation message from KRA confirming that you have fully paid all your KRA tax penalties.

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Tips on How to Avoid Having to Pay KRA Tax Penalties and fines
  • Always file your tax returns on time. Never ignore KRA’s dateline which is 30th of June every year.
  • If unfortunately you find yourself in the situation where you have to pay KRA tax penalties and fines, you can apply for a waiver. KRA can forgive your penalties if you provide valid reasons as to why you committed a tax offense.
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By following the above simple steps, you will be able to clear your tax penalties


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