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KRA Wants Kenyans To Take Advantage  of Tax Amnesty

KRA Wants Kenyans To Take Advantage  of Tax Amnesty .

 

 

  • Kenya Revenue Authority (KRA) announced the introduction of the tax amnesty on interest and penalties accrued to late payment and filing of tax returns
  • The amnesty, which began on September 1, will run up to June 2024, following the implementation of the Finance Act 2023
  • KRA stated that those with interest and penalties arising from non-filing of returns were entitled to automatic waiver of the same upon the filing of returns.

The Kenya Revenue Authority (KRA) has advised Kenyans to take advantage of the ongoing tax waiver until June 2024.

KRA Commissioner General Humphrey Wattanga.
KRA Commissioner General Humphrey Wattanga asked Kenyans to pay principal taxes due. Photo: KRA. Source: Twitter

What did KRA say on tax waivers?

In a notice dated Monday, October 2, the taxman said the amnesty was in line with Finance Act 2023.

KRA Commissioner General Humphrey Wattanga said taxpayers with accrued interests up to December 2022 should pay the principal taxes due so the agency can write off penalties.

“One of the key pillars to enhance voluntary compliance is the tax amnesty programme introduced through the Finance Act 2023. 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,” Wattanga said.

“Take advantage of the Tax amnesty. Don’t miss out on this opportunity,” KRA stated.

Who shall not qualify for KRA tax amnesty?

KRA stated that those with interest and penalties arising from non-filing of returns were entitled to automatic waiver of the same upon the filing of returns.

However, the waiver does not cover penalties and interest related to customs duty since it is limited to the Tax Procedures Act 2015 provisions.

“The amnesty only covers tax laws covered under the Tax Procedure Act, 2015. Custom duties administered under the East Africa Act do not qualify for amnesty,” KRA stated.

How much did KRA lose in waivers?

In May, KRA accused the National Treasury of improper writing of KSh 9.2 billion in tax waivers and abandonment

 

KRA’s top governing body mentioned several companies that benefitted from the underhand deal, claiming that the Treasury did not consult it.

The taxman disclosed that exemptions, waivers and abandonment were a major obstacle to realising revenue targets.

A total of KSh 20.4 billion worth of tax was written off between January 2018 and February 2023, with the session in parliament bringing to light details of irregular approvals made by the Treasury.

 

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