Due dates for taxes

Do you know that one of the simplest step towards minimising tax liability is ensuring that tax due dates are adhered to. This will help you remain compliant with the tax regulations and at the same time you avoid suffering from penalties and interest charged for late submission of tax returns. A certificate of tax compliance has also become a necessary requirement before one can access lucrative contracts. As such, the need for filing your tax returns in time and the below deadlines need to be observed when filing tax returns.

Tax type	Due date
Withholding tax returns	20th of every month
VAT returns	20th of every month
PAYE	9th of every month
Instalment tax	20th day of 4th, 6th, 9th, and 12th month*
Turnover tax	20th of every month
Fringe benefit tax	20th of every month

*25% of estimated tax liability is payable every quarter

An appreciation of the tax penalties is also a critical element of tax planning. Some of the most common tax offences are listed below together with the appropriate penalties.

Tax offence	Penalty
Failure to remit taxes	Penalty is 20% of the tax not paid
Interest accrued on unremitted tax	Charge is 2% per moth
Late submission of returns	5% of the tax due subject to a minimum charge of Kes 10,000 in respect to corporate tax payers and Kes 1,000 for individual tax payers.
Understatement of tax liability	20%* (Correct instalment tax due – 110%*actual instalment paid)
Tax evasion	Two times the tax not paid, fine subject to a maximum of Kes 200,000 and or imprisonment not exceeding two years
Non submission or deduction of PAYE	25% of the PAYE due subject to minimum of Kes 10,000

**Duplum rule applies where maximum interest charged cannot exceed the principal tax that was due.