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01 November 2023 Kenya Revenue Authority issues guidelines on tax amnesty application process
The Kenyan Revenue Authority (KRA) has issued guidelines on the implementation of a tax amnesty program introduced under the Kenyan Finance Act 2023. The Act introduced Section 37E into the Tax Procedures Act, which requires the KRA to refrain from recovering historical outstanding penalties and interest.
Category 1 taxpayers have settled the principal tax on their historical tax obligations of up to 31 December 2022. These taxpayers are entitled to an automatic amnesty of any accrued penalties and interest. These are taxpayers who have outstanding principal tax for historical periods up to 31 December 2022. They are required to apply for the amnesty coupled by a payment plan for the outstanding principal tax. The outstanding principal tax must be settled by 30 June 2024.
The amnesty application process may be accessed either by submitting a hardcopy (paper) application or and by utilizing the online tax return filing system, i-Tax. The taxpayer is required to assess existing liabilities, namely, principal tax, penalties and interest for historical periods up to 31 December 2022. Where a taxpayer has an outstanding principal tax, they should ensure full payment of the principal tax by 30 June 2024. If a taxpayer had already kickstarted a VTDP process that has not been fully finalized, the taxpayer is required to liaise with the KRA if they had already paid existing principal tax.
Document ID: 2023-1816 | |