Have you filed your taxes yet? The deadline is fast approaching and as a registered taxpayer, you are legally required to file tax returns every financial year while those with no business or not in gainful employment must file ‘nil’ KRA tax returns.
According to Kellen Kariuki from ABC Bank, filing your taxes on time goes beyond just staying compliant with the law. It’s a crucial step towards building a strong financial history which is beneficial when applying for loans, credit cards, or even visas.
“Did you know the government might owe you money? Filling your taxes early ensures you get any potential tax refunds. Remember, your tax contributions play a vital role in developing Kenya.” says Kellen.
Need help with the process? Kellen notes that the Kenya Revenue Authority (KRA) website is user-friendly, making the process easy while for more complex situations, you can consider seeking help from a professional.
Kellen notes that the types of tax returns an individual needs to file before the 30th June deadline are:
● Individual Tax Return( PAYE-Pay As You Earn): If you live in Kenya and earn income from employment or services rendered, both within and outside the country, you’ll need to file an individual income tax return.
● Corporate Taxes: Businesses pay corporate tax and the tax rate depends on residency status (resident companies pay 30%, non-residents pay 37.5%).
● Income Tax from Partnership: While partnerships themselves don’t pay income tax, individual partners are responsible for declaring their share of the partnership’s income on their tax returns.
Missing the tax filing deadline can result in financial penalties, which can drain your hard-earned money. On top of that, interest charges accrue on any outstanding taxes, making the final amount you owe higher. At the same time, in extreme cases, failing to file altogether could lead to serious legal consequences, including audits and court appearances. To file your returns, log into the KRA tax portal through the link: https://itax.kra.go.ke/KRA-Portal/
Ditch the last-minute scramble by taking a proactive approach to filing your taxes. Remember, a stress-free you is a financially happy you!