Everything You Need To Know About Paying Taxes Before The Deadline

Filing taxes is not an exciting task to many people, especially because it involves parting with your hard-earned money. However, it is the responsibility of every Kenyan above 18 years to fulfill their tax obligations.

The process of paying taxes is very easy, and this article will assist you in getting organized to avoid any unexpected surprises from the government or Kenya Revenue Authority (KRA).

Before the tax filing deadline, which is June 30th each year, it is crucial to understand why filing your taxes is important.

For example, imagine msee kama Brayo* mwenye ako 25 years anaown boda boda na anamake between Sh12,000 na Sh18,000 akijituma kabisa.

Fortunately, yeye hajafika income yenye ako obligated kulipa taxes. According to sheria, msee huqualify kulipa income tax kama anaearn more than Sh24,000, so Brayo anaweza jikaza a-save hizo doo ndio aweze kulipa loan ya hiyo bike.

Ata kama Brayo doesn’t meet the threshold ya kulipa tax, ni muhimu kufile nil returns to comply with the law.

Take another example ya msee kama Felo* mwenye anapiga mashughli za online writing ama transcription, na at the end of every month ako na kitu kama Sh25,000 to Sh30,000.

Kwa sababu amefika threshold ya kulipa tax, one of the things Felo anafaa kudo ni kuobtain PIN number from KRA. PIN number ya KRA sio kama ya simu, ni njia ya KRA kukutambua.

Akiwa na hiyo PIN, anaweza log in kwa platform ya KRA inaitwa iTax. The platform has many tabs to navigate but the most important one ni yenye imeandikwa ‘income tax’.

Hapo ataget form ya kujaza details zake zote, including how much he earns, pamoja na expenditure yake.

After kuconfirm amejaza the correct details, system the iTax platform itacalculate how much anafaa kulipa KRA. Usually, the rate for someone earning like Felo will pay 25%. The payment details pia ziko available kwa hiyo website.

After kulipa, atapata certificate ya kuconfirm that the taxes were filed correctly. Now he can focus on increasing his income ndio aweze kuspport familia yake na kusave doo ya kuanza biz ya gaming.

Before he starts his video game shop, itabidi ameapply license ya kanjo which requires a KRA PIN na because he has been paying taxes, haitakuwa ngumu kuget.

Another example ni manzi kama Anne mwenye ako na skills noma pale kwa salon lakini pia ako na hustle zingine zinaleta unga kwa meza.

Lets assume Anne anamake between Sh40,000 to Sh60,0000 per month.

Kama Felo, Anne anafaa kwenda kwa iTax kudeclare income yake kwa form yenye iko kwa system

However, unlike Felix, Anne will have to declare her different sources of income and expenditures kwa the different segments on the form. The system will calculate how much she needs to pay.

Kufile nil returns ni kama kwambia KRA that hukuwa na income tax obligations zozote in that particular year. Ni important to file nil returns so you don’t get charged the penalty ya not filing. Penalty can start from 10,000 Ksh.

Filing a nil return is the same as filing a regular income tax return, where you enter the income details and deductions, and income tax is calculated and shown that there is no tax due.

People who are allowed to file nil returns ni wale hawajafika threshold ya kulipa taxes.

Taxes hukuwa very crucial for any country because hiyo ganji ndio hutumika kuprovide essential public services, kama mabarabara, healthcare, education, na security.

When you file your taxes, you are contributing to the growth and progress of the country.

Inaweza kufeel kama paying taxes ni money thrown down the drain, but sticking to the law has a the following benefits:

1. Avoiding legal trouble: Failing to file taxes can result in penalties, fines, or legal issues. By fulfilling your tax obligations utakuwa umeondokea ngori mob sana, as we’ll see at the end of the article.

2. Access to Financial Services: Filing taxes ni important sana ku-build your financial profile. Hii mambo ni essential sana when you want to apply for loans, mortgages, na other financial services. Ina-show your financial responsibility na pia ku-increase your credibility.

3. Potential Refunds: If you've been filing your taxes then mistake ifanyike, whereby your deductions zizidi your taxable income, unaweza qualify for a tax refund. Filing taxes ndio inahakikisha you don't miss out.

4. Contributing to National Development: By paying taxes, you contribute to the development of our country, making a positive impact on the lives of all Kenyans

Ukichelewa kufile tax returns, unaweza pata fine ya Sh 2000 ama 5% of the tax due, whichever is higher.

Another consequence of not filing returns ni kuwa lockout out of government opportunities kama kazi ama biashara.

Gava hutake taxes very seriously because that how it gets money to provide services and usually, mtu huitishwa tax clearance certificates for opportunities.

KRA wakigundua hujakuwa ukilipa ushuru wanaweza tinga biz yako.

Kama bado huja-file tax trturns, click link ku-file;Kenya Revenue Authority