Companies pay a Sh10,000 penalty or five per cent of the tax payable in the year the return captures or whichever is higher.
The law requires anyone with a personal identification number to file returns irrespective of employment status.
Some 953,971 taxpayers did not file their returns with the Kenya Revenue Authority (KRA) by the June 30, 2024 deadline, exposing them to penalties by the taxman.
Official data from KRA shows that 8,046, 029 Kenyan taxpayers had filed their returns by June 30 against a targeted nine million.