Don’t Let the Kenya Revenue Authority (KRA) Knock Twice: Common Tax Return Mistakes to Avoid

Filing your tax return in Kenya can feel daunting, but avoiding these common mistakes can save you time, money, and stress:

  • Missing the UTR: Not obtaining a Unique Taxpayer Reference (UTR) number on time can delay your filing process. Apply for your UTR well before the filing deadline.
  • Income Amnesia: Forgetting to declare all your income sources is a recipe for trouble. This includes employment income, rental income, business income, and even interest earned. Keep meticulous records to ensure complete income reporting.
  • Excluding Allowable Expenses: Not claiming all eligible deductions can mean overpaying taxes. Review allowable expenses like pension contributions, medical expenses with receipts, and work-related travel costs.
  • High-Income Child Benefit Tax Trap: If your income exceeds a certain threshold, you may be subject to the High-Income Child Benefit Tax Charge. Be aware of this potential tax and factor it into your filing strategy.
  • Record-Keeping Regrets: The Kenya Revenue Authority (KRA) may request documentation to verify your claims. Maintain organized records of income, expenses, and receipts for at least five years after filing.

By staying informed and keeping good records, you can ensure a smooth tax filing experience. Remember, if you’re unsure about anything, consult a registered tax advisor familiar with Kenyan tax laws.

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