Thousands of Kenyans now have a reason to breathe easier as the Kenya Revenue Authority (KRA) announced a 24-hour extension for filing tax returns. The initial deadline, set to expire at midnight on Monday, June 30, has been pushed to midnight on Tuesday, July 1, 2025.

Relief for Taxpayers After Technical Glitches

KRA cited technical issues with the iTax system on the original deadline day as the reason for the extension. The move aims to give taxpayers more time to meet their obligations.

“We have opened the service lane! 24-hour extension up to tomorrow, July 1, 2025, midnight to file and pay your returns!” KRA announced in a statement, sparking relief among Kenyans scrambling to beat the clock.

Extended Support for Taxpayers

To assist in the last-minute rush, KRA has extended its support services.

  • Contact Centre Support: The KRA contact centre will offer assistance from 7 a.m. to 8 p.m. on Tuesday.
  • Service Centres and Huduma Centres: Offices across the country will remain open for an extended 12-hour period, operating from 8 a.m. to 8 p.m.

These measures aim to reduce congestion and provide hands-on support for those filing returns or resolving issues.

Filing Tax Returns: Who’s Obligated?

Filing annual tax returns is not limited to salaried employees. The law mandates all eligible taxpayers to declare their income, including:

  • Business Owners: Entrepreneurs must report their business earnings.
  • Landlords: Rental income must be declared.
  • Farmers: Agricultural income must also be included.
  • Individuals Without Income: Those without earnings during the year are required to file NIL returns.

Even salaried employees whose employers already remit Pay As You Earn (PAYE) must file their returns to comply with the law.

Penalties for Late Filing and Payment

Failure to file by the extended deadline comes with significant consequences:

  1. Late Filing Penalty: A fine of 5% of the tax due or Ksh2,000, whichever is higher.
  2. Unpaid Tax Penalty: An additional 5% of unpaid taxes.
  3. Monthly Interest: A 1% monthly interest accrues on any unpaid tax until the amount is cleared.

KRA’s Efforts to Ease Compliance

This extension follows similar initiatives earlier in the year. In May, KRA extended working hours at service centres and Huduma Centres to handle the high influx of taxpayers filing their 2024 income tax returns.

These proactive measures aim to reduce congestion, mitigate system overloads, and ensure compliance for all Kenyans with active KRA PINs.

A Final Reminder

As the new July 1, 2025, deadline approaches, KRA urges all taxpayers to take advantage of the extended hours and support services to meet their obligations and avoid penalties.

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