KRA waives Sh158 billion under tax amnesty programme

The Kenya Revenue Authority (KRA) has waived Ksh 158 billion in penalties, fines, and interest under the ongoing Tax Amnesty Programme, which was launched in December last year.

This has provided relief to over 2.9 million taxpayers who qualified for amnesty as of last week.

This is even as since the rollout of the tax amnesty, KRA has also collected Ksh 10.9 billion in principal tax payments.

The Tax Amnesty Programme provides an opportunity for taxpayers to clean their tax records by offering a waiver on penalties, interest, and fines for tax debts accrued up to December 2023.

The programme, which runs until the end of this financial year, underscores KRA’s commitment to helping taxpayers resolve past tax issues and regularise their tax compliance.

The initiative is part of KRA’s broader efforts to foster voluntary compliance and provide relief to taxpayers burdened by past debts. It offers a unique chance to settle tax matters on favorable terms and to move forward on a clean slate.

The key highlights of the programme are an automatic Waiver where taxpayers without outstanding principal taxes for periods up to December 31, 2023, but owing interest and penalties, qualify for automatic waiver of the penalties and interest and need not make an application.

Taxpayers with outstanding principal taxes for the period must apply via the iTax system and submit a structured payment plan for full settlement of the outstanding principal taxes by the end of June this year.

Tax debts arising from January 1, 2024 and after do not qualify for amnesty. All penalties, interest, and principal taxes for debts incurred after this date remain payable.

Taxpayers with ongoing tax disputes are encouraged to resolve the disputes through the Alternative Dispute Resolution framework (ADR) to ensure a swift resolution before the amnesty timeline lapses. KRA encourages all taxpayers to act promptly and take advantage of the tax amnesty before the end of June.