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Government and Policy

Kenya Tax Amnesty 2023: A Chance For Taxpayers To Get A Clean Slate

BY Steve Biko Wafula · October 16, 2023 06:10 pm

The Kenya Revenue Authority (KRA) has launched a 10-month tax amnesty program, which will run from September 1, 2023, to June 30, 2024. The amnesty is aimed at helping taxpayers who have failed to pay their taxes by the end of last year to regularize their tax affairs and avoid penalties and interest.

The amnesty applies to taxpayers who have penalties and interest but no principal taxes owing for periods up to December 31, 2022. It is also applicable to taxpayers who have principal tax accrued up to December 31, 2022, but who pay the outstanding principal tax debt by June 30, 2024.

To apply for the amnesty, taxpayers can use the KRA’s iTax system. The system will display the taxpayer’s debt status with all tax heads, and the taxpayer will apply for the amnesty by selecting the periods and tax heads that qualify for the amnesty.

Read Also: KRA’s Commitment to Simplifying Taxes: A Boon For Individuals And Businesses

The taxpayer may then proceed to make full payment of the principal tax due or enter into a payment plan agreement with the Commissioner for the KRA. A taxpayer who opts to settle the outstanding principal tax in installments must indicate the frequency of payments in the system-embedded payment plan agreement.

The payment plan agreement shall not extend beyond June 30, 2024, and any penalties and interest relating to the principal tax under the tax amnesty period that remains unpaid after June 30, 2024, will not qualify for amnesty.

The tax amnesty program is a win-win for both taxpayers and the government. Taxpayers can apply for a waiver of penalties and interest, save money, and regularize their tax affairs. The government, through the KRA, will, on the other hand, hope to collect more revenue.

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Soko Directory Analysis:

The tax amnesty program is a timely and welcome initiative by the KRA. It is an opportunity for taxpayers to regularize their tax affairs and avoid penalties and interest. The program is also likely to boost government revenue.

The amnesty program is particularly beneficial for taxpayers who have been unable to pay their taxes due to financial challenges. It will give them a chance to get back on track and avoid further penalties and interest.

The amnesty program is also a good opportunity for businesses to clean up their tax affairs. This will help them to improve their creditworthiness and attract investors.

Overall, the tax amnesty program is a positive development for both taxpayers and the government. It is an opportunity for both parties to reset their relationship and build a more sustainable tax system.

Read Also: KRA And Eastleigh Business Owners Commit To Collaborate For Enhanced Tax Compliance

Steve Biko is the CEO OF Soko Directory and the founder of Hidalgo Group of Companies. Steve is currently developing his career in law, finance, entrepreneurship and digital consultancy; and has been implementing consultancy assignments for client organizations comprising of trainings besides capacity building in entrepreneurial matters. He can be reached on: +254 20 510 1124 or Email: info@sokodirectory.com

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