Calculate your KRA late filing fees and interest with the KRA Penalty Calculator. Master the KES 2,000 individual fine, the 5% VAT penalty, and the 1% compounding monthly interest rules on iTax.
KRA Penalty Calculator
Late Filing & Interest
*Calculated based on KRA’s current statutory rates. Late filing penalties for PAYE are the higher of 25% or KES 10,000. For individuals, it’s the higher of 5% or KES 2,000.
Frequently Asked Questions (FAQs)
What is the penalty for late filing of Individual Income Tax in 2026?
For individuals, the penalty is 5% of the tax due or KES 2,000, whichever is higher. If you are filing a Nil return late, the flat rate of KES 2,000 applies.
How much is the penalty for late VAT or Turnover Tax (TOT) filing?
Late filing for monthly returns like VAT or TOT attracts a penalty of KES 10,000 or 5% of the tax due, whichever is higher.
Does KRA charge interest on unpaid tax?
Yes. In addition to the late filing penalty, KRA charges a late payment penalty of 5% of the tax due, plus an interest rate of 1% per month (or part thereof) until the balance is cleared in full.
Can I apply for a waiver of KRA penalties?
Yes, you can apply for a waiver through the iTax portal under the “Debts and Enforcement” menu. However, you must provide a valid justification (e.g., system technical hitches or financial hardship) and have paid the principal tax amount first.
What is the deadline for PAYE returns?
PAYE must be filed and paid by the 9th of the following month. Failure to remit attracts a penalty of 25% of the tax involved or KES 10,000, whichever is higher.
Read: How to File KRA Nil Returns