17/03/2025
Accounting Period and Tax Return Filing for Companies
-Many late filings for companies occur due to unique accounting periods that do not align with the calendar year (December 31st).
-Unlike individuals, whose accounting period typically runs from January to December, companies have the flexibility to choose an accounting period that may not end in December or start in January.
-When registering a company and obtaining its KRA PIN, the business is allowed to select its preferred accounting period.
-Companies are required to file their tax returns within 6 months after the end of their accounting period.
-This means the company's tax return filing deadlines will depend on the end of that chosen period, not necessarily on a calendar year basis.
Do you know when your company’s accounting period ends?
Do you know your penalised 20,000/= for not filing/ late filing for Income Tax - Company? 10,000/= for obligations like VAT?
