The Kenya Revenue Authority (KRA) has reintroduced the Tax Amnesty Program following the enactment of the Tax Procedures (Amendment) Act, 2024.
In a notice issued on Friday, December 27, KRA confirmed that the program will run from the notice date until June 30, 2025. The initiative allows taxpayers to apply for waivers on penalties and interest accrued on unpaid taxes up to December 31, 2023.
“KRA informs taxpayers that the Tax Procedures (Amendment) Act, 2024 has introduced a tax amnesty on interest, penalties, or fines on tax debt for periods up to 31st December 2023. The tax amnesty program will run from 27th December 2024 to 30th June 2025,” the notice stated.
How to Apply for the Tax Amnesty Program
To qualify for the amnesty, taxpayers must meet the following conditions:
- Outstanding Principal Taxes: Taxpayers who owe principal taxes accrued up to December 31, 2023, and are unable to pay in a lump sum, must settle the full amount by June 30, 2025.
- Amnesty Application: Applicants must submit a request to the KRA Commissioner, including a proposed payment plan for any outstanding principal taxes.
Taxpayers who have already paid all principal taxes by December 31, 2023, will automatically qualify for waivers on penalties and interest without needing to apply.
“KRA encourages taxpayers to take advantage of this opportunity to clear outstanding tax liabilities,” the notice added.
Background on the Tax Amnesty Program
The Tax Amnesty Program, first introduced under the Finance Act 2023, allows taxpayers to apply for waivers on penalties and interest for tax debts incurred up to December 31, 2022. This program replaced provisions for penalty and interest waivers under previous tax laws.
Under the initiative, taxpayers are only required to settle their principal tax amounts, with penalties and interest waived upon compliance.
In August 2024, KRA announced that it had collected Ksh43.9 billion from 1,064,667 taxpayers during the previous amnesty period, which ended on June 30, 2024. The authority reported waiving penalties and interest amounting to Ksh507.7 billion between September 2023 and June 2024.
The program’s most successful month was June 2024, which recorded collections of Ksh15.1 billion.
“Through the tax amnesty program, KRA waived penalties and interest amounting to Ksh507.7 billion, benefiting 3,115,393 taxpayers between 1st September 2023 and 30th June 2024,” the statement noted.
Taxpayers are urged to utilize the current amnesty window to settle outstanding tax obligations and avoid further penalties.
