Are you a Kenyan taxpayer struggling with outstanding tax penalties and interest? The Kenyan government is offering a tax amnesty until June 30, 2024, allowing you to waive these penalties and interest under certain conditions. This article provides a comprehensive overview of the taxpayer guidelines you need to know to take advantage of this opportunity.
Who qualifies for the tax amnesty?
There are two categories of taxpayers eligible for the amnesty:
Category 1: If you have no outstanding principal tax for periods up to December 31, 2022, but have penalties and interest due, you’re in luck! No application is required. The amnesty is automatic for you.
Category 2: If you have outstanding principal tax for periods up to December 31, 2022, you can still qualify for the amnesty by fully settling the debt by June 30, 2024. However, you must apply through the KRA system and submit a payment plan proposal.
What’s excluded from the amnesty?
It’s important to note that not all tax debts qualify for the amnesty. Here’s what’s excluded:
- Penalties and interest related to tax avoidance (as defined under Section 85 of the Tax Procedures Act, 2015).
- Penalties and interest for tax debts accrued after December 31, 2022.
How to apply for the tax amnesty:
For Category 1 taxpayers: Since the amnesty is automatic, you don’t need to take any action. Just sit back and relax!
For Category 2 taxpayers: Here’s what you need to do:
- Access the KRA system: Visit the KRA website and log in to your account.
- Apply for the amnesty: The system will display your debt status. Select the specific periods and tax heads you want to include in the amnesty application.
- Choose your payment option: You can either pay the full amount immediately or enter into a payment plan agreement with the KRA.
- Submit your application: Once you’ve chosen your payment option and filled out the necessary information, submit your application electronically.
- Follow your payment plan: If you choose a payment plan, ensure you make your payments on time to avoid losing the amnesty benefits.
Key things to remember:
- The amnesty applies to all tax heads under Kenyan tax laws.
- Only interest and penalties related to principal tax due before December 31, 2022, are eligible.
- If you have pending tax disputes, settle them before applying for amnesty.
- A detailed user guide is available on the KRA website for further guidance.
Remember to share this article with anyone who might benefit from the tax amnesty! By spreading the word, we can help more Kenyan taxpayers comply with their tax obligations and improve their financial standing