KRA announces tax waiver on penalties for all Kenyans
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Kenya Revenue Authority (KRA) to grant tax waiver on all interest (penalties) accrued before December 2022 if principal tax is settled in full
Kenya Revenue Authority (KRA) to grant tax waiver on all interest (penalties) accrued before December 2022 if principal tax is settled in full.
Commissioner General Humphrey Wattanga said in a statement that the Tax Amnesty Program outlined in the Finance Act 2023 is consistent with the tax interest write-off.
The action is anticipated to increase taxpayers’ voluntary tax compliance across the country according to KRA.
“KRA is constantly determined to enhance voluntary compliance among taxpayers and has made significant strides in this field. One of the key pillars to enhance voluntary compliance is the Tax Amnesty Program introduced through The Finance Act 2023,” he stated.
“In the spirit of giving back to taxpayers, we are calling on all who have accrued interests up to December 2022, to pay up the principal taxes due, so that we can write off the penalties and interests accrued.”
The Finance Act states that the amnesty program, which may be applied for on KRA’s iTax system, will be available from September 1, 2023, until June 30, 2024.
Those who have accrued penalties and interest but no principal taxes for the time periods up to December 31, 2022, or individuals who have accrued principal tax but have paid the principal tax, are eligible for the program.
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The Act also stipulates that a proposed payment schedule for the unpaid principal taxes must be submitted along with the amnesty application.
The development is in line with President William Ruto’s goal of waiving the accrued penalties on pending taxes incurred before January 1, 2023.
At the beginning of September, the Head of State noted that his decision to waive the penalties was a result of concerns raised by Kenyans over accrued interests.
Ruto further added that the waiver will ease the burden on Kenyans and align with the government’s plan for a fair and inclusive economy.
“From September 1, 2023, to June 2024, you will have the opportunity to settle only the principal tax amount of outstanding tax debts incurred before January 1 2023 as we are waiving penalties and interests over the nine-month period,” he announced at the time.
“We are now making an offer to our taxpayers to have an opportunity to only pay the principal. I expect the taxpaying public will take advantage.”
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