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KRA’s Generous Gift This Taxpayers Month: Tax Amnesty Wipes Away Interest And Penalties Up To Dec 31, 2022

BY Steve Biko · October 16, 2023 07:10 pm

The Kenya Revenue Authority (KRA) has announced a tax amnesty on interest and penalties for tax debts incurred for periods up to December 31, 2022. The tax amnesty will run from September 1, 2023, to June 30, 2024.

Who qualifies for the tax amnesty?

All taxpayers who do not have principal tax due for periods up to December 31, 2022, but have penalties and interest due are eligible for the tax amnesty. This amnesty is automatic, and taxpayers do not need to apply.

All taxpayers who have outstanding principal tax for periods up to December 31, 2022, are also eligible for the tax amnesty, as long as they fully settle their outstanding principal tax debts by June 30, 2024. To qualify for this amnesty, taxpayers must:

Apply for amnesty in the system.

Submit a payment plan proposal for the outstanding principal taxes. Pay all outstanding principal taxes raised in self-assessments or amended assessments relating to any period up to December 31, 2022, but raised after December 31, 2022, before June 30, 2024.

What taxes are covered by the tax amnesty?

The tax amnesty covers all tax heads under tax laws covered in the Tax Procedures Act, of 2015.

How to apply for the tax amnesty

Taxpayers who qualify for amnesty under paragraph 3 must apply in the system. See here for more information; https://www.kra.go.ke/popular-links/guidelines-on-tax-amnesty-2023-2024#:~:text=The%20tax%20amnesty%20commences%20on,force%20until%2030th%20June%202024.&text=The%20tax%20amnesty%20shall%20be,tax%20period%20and%20tax%20obligation.&text=The%20tax%20amnesty%20shall%20cover,the%20Tax%20Procedures%20Act%2C%202015 and https://www.kra.go.ke/news-center/public-notices/2000-tax-amnesty-on-interest-and-penalties-for-periods-up-to-31st-december-2022

The system will display the taxpayer’s debt status with all tax heads. The taxpayer must apply for the amnesty by selecting the periods and tax heads that qualify for the amnesty.

The taxpayer may make full payment of the principal tax due or enter into a payment plan agreement with the Commissioner.

Taxpayers who choose 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 cannot extend beyond June 30, 2024. 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.

By accepting the terms and conditions of the amnesty, the taxpayer commits to honoring the payment plan agreement.

Amnesty will be granted upon the payment of the final installment as committed in the payment plan agreement.

A detailed user guide on the Amnesty application process will be available on the KRA website; https://www.kra.go.ke/news-center/public-notices/2000-tax-amnesty-on-interest-and-penalties-for-periods-up-to-31st-december-2022

Benefits of taking advantage of the tax amnesty

The tax amnesty offers several benefits to taxpayers, including:

It can help taxpayers to reduce their overall tax liability.
It can improve the taxpayer’s creditworthiness.
It can reduce the risk of the KRA taking enforcement action against the taxpayer.

The KRA’s tax amnesty is a good opportunity for taxpayers to reduce their tax liability and improve their tax compliance status. Taxpayers are encouraged to take advantage of the amnesty by applying before June 30, 2024.