Every taxpayer should follow the basic practice of filing KRA returns on time. Individuals and corporations must file their yearly returns with the Kenya Revenue Authority (KRA) by June 30 of each year. Both the taxpayer and the government can profit in a number of ways by filing returns early. This post will discuss the need of filing KRA returns as soon as possible.


Avoid Late Filing Penalties

Taxpayers who file their KRA returns on time might avoid the late filing fines. KRA charges a late filing penalty of 5% of the tax payable or Ksh 2,000, whichever is higher. For up to five months, the fine rises by 1% each month. As a result, you will be charged a penalty equal to 10% of the unpaid tax or Ksh 20,000, whichever is higher, if you don't file your returns for 5 months. You will keep away from these severe fines if you file your returns on time.


Plan Your Finances Better

Filing your returns early enables you to plan your finances better. By filing your returns early, you get to know your tax liability early, allowing you to plan how to pay your taxes on time. Additionally, filing early ensures that you do not have to worry about meeting the deadline when the time comes.

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Avoid Last-Minute Rush

By submitting KRA returns in advance, you avoid the last-minute rush. Taxpayers may find up hurrying to file their taxes, which can result in errors and inaccuracies, because the deadline for completing returns typically comes with a lot of pressure. You may avoid this pressure and make sure you have enough time to review your taxes, fix any errors, and file them correctly by filing your returns early.


Get Refunds Faster

You can receive refunds more quickly by filing your returns early. Whether you have overpaid your taxes or have a tax credit, you might be eligible for a refund when you file your returns. By filing earlier, you can count on KRA to complete your taxes quickly and issue you a refund more quickly.


Avoid KRA Audits

Reduce your chances of a KRA audit by filing your returns early. The authority carries out audits to make sure that taxpayers have submitted accurate forms and paid the appropriate taxes. Although KRA audits typically occur after the deadline for filing taxes has gone, filing your returns early lowers your risk of being audited.


Filing KRA returns early is an essential practice that every taxpayer should embrace. It helps you avoid late filing penalties, plan your finances better, avoid last-minute rush, get refunds faster, and reduce your chances of getting audited. Therefore, it's important to ensure that you file your returns early to enjoy these benefits. Additionally, you can seek professional help from tax experts who can assist you in filing your returns correctly and on time.