This is a guide on how to pay KRA penalties through Mpesa as of 2021. All registered taxpayers in Kenya are required to adhere to the tax regulations set by the Kenya Revenue Authority. Failure to comply with these laws is an offense and results in various penalties which we have listed below.
List Of KRA Penalties in Kenya
1. Failure to deduct PAYE, account for it, or to submit a certificate upon request.
Penalty – Whichever is greater of, 25% of the amount of the tax involved or Ksh. 10,000.
2. Failure to deduct or pay Withholding Tax.
Penalty – 10% of the amount of the tax involved, up to a maximum of Kshs. 1 million.
3.Failure to pay Stamp Duty.
Penalty – Additional 5% of the payable duty for every quarter, from the date of the Instrument.
4. failure to pay Excise Duty or VAT.
Penalty – whichever is greater of, 5% of the amount of the tax due or Ksh. 10,000.
5. Failure to pay tax on due date.
Penalty – Additional 20% of tax involved is charged.
6. Failure to file annual returns by the due date.
Penalty – Additional tax equal to 5% of the normal tax, or Ksh. 10,000.
7. KRA PIN-related offense.
Penalty – Ksh. 2,000 per offence.
How To Pay KRA Late Tax Returns penalty Through Mpesa 2020
1.Log into your KRA web portal account through this link https://itax.kra.go.ke/
2.Select payment registration under the payment drop-down menu
3. Fill the required details on the payment information page, submit and download the E-slip which will have a PRN ( Payment Registration Number )
4. You will use this PRN as your account number when making the payment using Mpesa. The PayBill number you will use is 572572
- Go to your Mpesa Menu
- Select Lipa na Mpesa
- Select Paybill
- Enter 572572 as the business number
- Enter the PRN as your account number
- Enter the amount you want to pay
- Enter your Mpesa pin and press OK
- You will receive a transaction confirmation message from Mpesa.
You can, either way, use the downloaded E-slip as your deposit slip for Bank payments.
You can contact KRA using their twitter account @KRACare or call 0711099999/4999999 for any assistance.