Important dates within the year

The financial calendar is very easy to lose focus on, with the many other responsibilities a company or organization has to deal with. This is why we are always happy to provide consultation and solutions to problems that may arise on the implications of missing the important dates, which inclue;

PAYE is a withholding tax on income payments to employees. They are treated as advance payments of income tax due and are refundable if they exceed tax as determined on tax returns. The Kenya Revenue Authority has set the date for these payments at the 9th of every month. The PAYE returns package should include P.10s, P.10As, P.9s and P.11s.

We urge that you balance your P.A.Y.E accounts, complete and file the needed documents (P.10s, P.10As, P.9s and P.11s) before the said date to avoid possible late submission penalties.

NOTE: PAYE Annual Returns are not compulsory where an organization continuously filed monthly PAYE returns during the year using the KRA online system. However, organizations that operated PAYE without sing the KRA online system (i.e. those who did monthly or quarterly returns) are expected to prepare PAYE annual returns.

Please note that where you may have had the same income tax PIN number but multiple pay-points; then do remember to have the returns balanced and consolidated in one bundle before submitting the hard copies to KRA (again, this only applies where monthly returns were not done online for everybody throughout the year).

Withholding tax returns – also known as a retention tax is a requirement by the government for the payer of an item of income to withhold or deduct tax prom the payment, and pay it to the government. This mostly applies to employment income.

Withholding Tax Rules 2001 require that Withholding Tax Returns also be submitted each year. Withholding Tax Annual Returns must capture all withholding tax deductions made during the year, from consultancies, management fees, construction contracts, commissions, royalties etc. Documents that comprise a complete (proper) return in this regard are only two (2), namely Form W10F and Form(s) W8Fs. It is however wise (i.e. not compulsory) to also attach copies of the relevant KRA receipts in this regard.

*also payable on this day of every month are VAT Remittances, Excise Duty, Aviation Fees and Standards Levy

31st March – must file the Annual Return Form 14 with the NGOs Co-ordination Board

31 May – filing of audited accounts if year-end was 31st December. Ask for extension of time if will be too tight.

30 June – Income Tax Annual Return to KRA (using Form IT.2C

NOTE: For any other year-end date other than 31st December, please follow the 3-5-6 rule for NGOs i.e. 3 months after financial year end (submit Annual Return – Form 14 to the NGOs Co-ordination Board); 5 months after year end (submit audited accounts to the NGOs Co-ordination Board) and 6 months after year end, submit Annual Tax Return (Form IT. 2C) to KRA.