Kenya's Tax Procedures Act 2015 entered into force on 19 January 2016. The main measures include new penalties, shortened statute of limitations and other tax administration measures.
Penalties
The new penalties include:
- Failure to register for tax - KES 100,000 per month, up to KES 1 million;
- Late filing of a tax return - the higher of 5% of the tax due or KES 20,000;
- Late payment interest - 1% (changed from compounded to simple interest);
- Failure to maintain documentation - KES100,000 o…