How to check KRA penalties and how to pay the penalties online

Have you ever had a problem with the Kenya Revenue Authority regarding penalties? How did you resolve the matter? Since the digitisation of the tax returns filing process, the Kenya Revenue Authority has embarked on a campaign of widening its tax base and captured numerous people's data in their system. Still, surprisingly, some are hardly familiar with the digital platform, which has a straightforward user interface. You might be wondering how to check KRA penalties or something else relating to the charges against your PIN. How can you make sure that you are updated to avoid extra costs?

The Kenya Revenue Authority is the official government institution mandated with handling tax collection and all matters relating to it in Kenya. This means that every Kenyan resident, and in some cases, non-residents use their online platform (iTax) to update their tax details.

If you have tax penalty issues, you'll utilise the same platform to check the status and update your details as required. The Kenya Revenue Authority has made it less cumbersome for individuals to update their penalties at their convenience, and the process is simple.

What are KRA penalties, and how do they accrue?

The Kenya Revenue Authority charges penalties on tax offences for different scenarios. And if these penalties are unpaid within the specified time, they attract interest. For instance, you are liable if you don't file your Pay As You Earn (PAYE) before the declared deadline every year (June 30th). The tax authority will charge you 25% of the tax due or Ksh.10,000, whichever is higher. The Kenya Revenue Authority imposes penalties for various offences for different taxes. How much is KRA penalties for various violations?

• Late payment of PAYE tax – 5% of the tax due and interest of 1% every month.
• Failure to deduct Withholding Tax, Withholding VAT, & Withholding Rental Income Tax – 5% of the tax due.
• Late payment Withholding Tax, Withholding VAT, & Withholding Rental Income Tax – 5% of the tax due.
• Late filing of MRI Returns – 5% of the tax due or Ksh.2,000, whichever is higher for Individuals or 5% of the tax due or Ksh.20,000, whichever is higher for non-Individuals.
• Late payment of MRI – 5% of the tax due and interest of 1% per month.
• Late payment of Stamp Duty – 5% of the duty payable.
• Late filing of the Excise Duty return – 5% of the tax due or Ksh.10,000, whichever is higher.
• Late payment of Excise Duty Tax – 5% of the tax due and interest of 1% per month.
• Late filing of the VAT Return – 5% of the tax due or Ksh.10,000, whichever is higher.
• Late payment of the VAT tax – 5% of the tax due and interest of 1% per month.
• Late filing of Income-tax company or partnership returns – 5% of the tax due or Ksh.20,000, whichever is higher
• Late payment of Income-tax for non-individuals – 5% of the tax due and interest of 1% per month.
• KRA PIN-related offences – Ksh.2,000 per offence.

Simple guide on how to file VAT returns on iTax Kenya

How to check KRA penalties and stay updated

Are you trying to figure out how to check penalties on iTax KRA? The process is straightforward as long as you have all your details for logging into the portal. Then, you can utilise the following steps to check your KRA penalties on the iTax portal.

• Visit the official KRA iTax portal.
• Enter your Kenya Revenue Authority PIN into the PIN box and click continue.
• Key in the arithmetic sum of the security stamp and log in to the system to access your user profile.
• Place your cursor on the menu labelled Debts and Enforcement to reveal a drop-down list.
• Then click on Request for Waiver for Penalties and Interests.
• You will be directed to a page with your details. Scroll down to the details of the waiver section and select the tax obligation and tax type.
• This action will reveal all the penalties you have been charged for the category chosen and the accrued interest on the penalties. Select the class in the drop-down list if you want to check the liability for another tax obligation.

Easy guide on how to file KRA returns 2019 in Kenya

That is how to check if you have KRA penalties. Even though the authority ordinarily sends notifications to your email once they charge you a penalty, it is a good idea to frequently check your status so that it doesn’t accumulate interest and pay on time.

How do I pay my KRA penalty online?

To pay your Kenya Revenue Authority penalties online, you will need to open your iTax account. Then, you can utilise the following steps for those who also want to know how to pay KRA penalties via Mpesa.

• Visit the iTax portal.
• Enter your credentials, including your KRA PIN, password and solve the arithmetic prompt to access your profile.
• Place your cursor on the Payments tab to reveal a drop-down menu. Click on the Payments Registration option.
• Check if every detail is correct, including the application type (taxpayer), taxpayer PIN and taxpayer name. Click next to proceed.
• You will get a page with various details and with some sections that you need to fill. First, choose the appropriate category in the tax head and tax subhead section.
• Choose the most appropriate payment type. Here, you have various options, including self-assessment, advanced payment, additional assessment, and a voluntary tax disclosure program.
• Select the appropriate tax period.
• Below the tax liability details, enter the amount that you wish to pay.
• Choose the preferred mode of payment, which is between RTGS and other methods of payment.
• Once done, click the send button and download the e-slip.
• You will need your Kenya Revenue Authority Paybill number, account number, and payment registration number to pay using M-Pesa.
• Go to your Mpesa.
• Select Lipa na Mpesa.
• Enter 572572 as the business no.
• On the account number, use the PRN as your account number (the PRN will be found on the E-slip).
• Then enter the amount you want to pay.
• Put your Mpesa password.
• Press OK

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There you go, payment made. You will receive an M-pesa message confirming that you've sent the amount and that the transaction was successful. Just in case you are in doubt, you can check the KRA penalty on the portal to confirm any pending charges.

How to apply for a KRA penalty waiver

Once you know how much KRA penalties you are supposed to pay, you can choose to apply for a waiver, but with a valid reason. According to The Tax Procedures Act, 201, Section 89 (7), a taxpayer can apply for a penalty or interest waiver provided they meet the conditions specified.

Any individual interested in applying for the waiver should provide supporting evidence for each application on why they need a waiver. The Kenya Revenue Authority contacts each individual through email or SMS contact information provided in the iTax portal. Everyone reached must provide supporting evidence within 30 days of this communication.

How to apply for KRA waiver

The process is simple, just as penalty checking and confirmation. What are the requirements for a penalty waiver?

• Your KRA details, including your PIN and KRA password, to log in to your account.
• KRA penalty waiver letter outlining the reasons why you want the penalties waived.

You can use the following process to apply for your KRA penalty waiver.

• Access the KRA iTax portal using your details.
• Upon successful login, you will see your iTax account dashboard with various tabs; click on the Debt and Enforcement tab and click on the Request for Waiver of Penalties and Interest sub-menu.
• Choose the application type as a taxpayer. Everything else, including the application information, is auto-updated.
• Upload your KRA waiver documentation in the upload section.
• Choose the tax obligation that you are applying for the waiver. Once selected, all the applicable penalties you are requesting for a waiver under the category will auto-populate. Next, select all that you are applying for the waiver.
• Once done, click submit to forward your application to the tax authority.
• After submitting, download the waiver application acknowledgement receipt. You can utilise your waiver acknowledgement receipt number to track the progress of your application.

How to change KRA email

Remember that you will not have to worry about penalties and interests if you file your tax returns on time and appropriately. That is why you need to have everything in order when filing or paying for your taxes.

For instance, if you’re filing your PAYE, you must have certain documents with you. So, you need to ensure that you have your employers' information, your employer's PIN, of which you may be required to request your employer to give you the P9 form.

Also, carry your financial statements, insurance premium certificate and withholding tax certificates if necessary. You will also be required to submit any other income-related documents or deductions that you may need to claim.

For those wondering how to check KRA penalties, the process is not as burdening as before, when there was no official online portal. All you need is an internet connection to check and pay for your penalties and interest.

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DISCLAIMER: This article is intended for general informational purposes only and does not address individual circumstances. It is not a substitute for professional advice or help and should not be relied on to make decisions of any kind. Any action you take upon the information presented in this article is strictly at your own risk and responsibility!

Are you trying to figure out how to file KRA returns on your income in Kenya? Tuko.co.ke featured an interesting article detailing all the steps one needs to take when filing their returns.

The most interesting thing is that KRA has gone digital in virtually all its services, making it easier for citizens to file their returns. And all you need is your PIN, password and relevant documents.

Simon Ayub (Lifestyle writer) Simon Ayub is a Content Manager, Strategist, and writer who joined Tuko's team in 2019. He graduated in 2014 with a BSc in Agricultural Economics and is a CPA. Simon has over a decade of experience creating content for nyagah.co.ke, theHoth and other platforms. He works on content encompassing biographies, fashion and lifestyle, gaming, and more. Simon was awarded the "Writer of the Year" 2022 on Tuko. In 2023, Simon finished the AFP course on Digital Investigation Techniques and, in 2024, expanded their skills through the Google Initiative Course. You can reach him via simonayub@gmail.com.