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Kenya’s Tax Amnesty: Your Chance To Settle Tax Debts With Ease

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

Kenya’s tax landscape is changing, and it’s great news for all Kenyan taxpayers. The Finance Act of 2023 has introduced a tax amnesty, allowing you to clear your outstanding tax debts without the burden of additional penalties and interest.

This tax amnesty is available from September 1, 2023, until June 30, 2024, giving you ample time to take advantage of this opportunity.

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Who Is Eligible for the Tax Amnesty?

This tax amnesty is open to two categories of individuals:

  1. If you have penalties and interest but no principal taxes owed for the period up to December 31, 2022, you qualify.
  2. If you have accrued principal taxes up to December 31, 2022, and you pay off this outstanding principal tax debt by June 30, 2024, you’re also eligible.

It’s important to note that the tax amnesty covers all tax heads under tax laws as outlined in the Tax Procedures Act of 2015. This means it encompasses various tax obligations, making it a comprehensive opportunity.

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

Exclusions

While the amnesty is generous, there are some exclusions:

  1. Penalties and interest related to tax avoidance under Section 85 of the Tax Procedures Act, 2015, are not eligible for amnesty.
  2. The amnesty does not apply to penalties and interest accrued for tax debts after December 31, 2022.

What’s the Purpose of the Tax Amnesty?

The purpose of this amnesty is to give taxpayers a chance to settle their tax obligations without the added burden of penalties and interest. The Kenyan government recognizes that life circumstances can sometimes make it challenging to meet tax obligations. By offering this amnesty, they aim to help taxpayers get back on track.

How to Apply for the Tax Amnesty

For those with penalties and interest but no principal taxes due up to December 31, 2022, the amnesty is automatic, and you don’t need to apply.

If you have outstanding principal tax for the same period and want to qualify for the amnesty:

  1. Apply for the amnesty.
  2. Propose a payment plan for the outstanding principal taxes.
  3. Ensure you pay the principal tax debt by June 30, 2024.

If you have self-assessments or amended assessments up to December 31, 2022, and they were raised after that date, you can still qualify for the amnesty. Just make sure to pay the outstanding principal taxes before June 30, 2024.

Taxpayers disputed tax liabilities, can still qualify for amnesty as long as they meet the conditions laid out in the guidelines.

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

Effective Date and Processing

The tax amnesty starts on September 1, 2023, and lasts until June 30, 2024. It’s processed based on the tax period and tax obligations relevant to your case.

General Conditions for Remission of Penalties and Interest

To qualify for the remission of penalties and interest:

  1. The amnesty applies only to interest and penalties related to principal tax due up to December 31, 2022.
  2. For taxpayers with tax liabilities from before December 31, 2022, and those with disputes, engage with the appropriate authorities to settle your case and agree on a payment plan.

Important Information

Please remember that if there’s any inconsistency between the information provided and the Revenue Laws, the Revenue Laws will prevail.

This tax amnesty is a unique opportunity for all Kenyan taxpayers to get their financial affairs in order. It offers a chance to settle your tax debts without additional financial strain. Take advantage of this window between September 1, 2023, and June 30, 2024, to secure your financial future and contribute to the country’s development. For more details, you can access the “Guidelines on Tax Amnesty” on the Kenya Revenue Authority (KRA) website or contact the KRA for assistance. Don’t miss this chance to clear your tax slate and build a better financial future.

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

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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