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Home » Featured » KRA Waives Kshs. 140 Billion in Tax Penalties and Interest

KRA Waives Kshs. 140 Billion in Tax Penalties and Interest

Queen Amber by Queen Amber
1 year ago
in Featured
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KRA Offices

KRA Offices

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Kenya Revenue Authority (KRA) is offering taxpayers an incredible opportunity to ease their tax burdens, having waived over Kshs. 140 Billion in penalties, interest and fines under the ongoing Tax Amnesty Program. With over 1.9 million taxpayers already benefiting, this initiative, launched on 27th December 2024, continues to provide relief to those who qualify.

The Amnesty program re-introduced in the Tax Procedures (Amendment) Act, 2024 provides a crucial opportunity for taxpayers to clean their tax records, offering a waiver on penalties, interest and fines for tax debts accrued up to 31st December 2023, underscoring KRA’s commitment to helping taxpayers resolve past tax issues without facing the full financial burden. The program runs until 30th June 2025.

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Since the re-launch of the Tax Amnesty program, KRA has successfully collected Kshs. 4 Billion in principal tax payments, demonstrating the program’s wide-reaching impact and the Authority’s commitment to supporting taxpayers in regularizing their tax compliance.

Key Program Highlights:

·       Automatic Waiver: Taxpayers who have paid their principal taxes due before 31st December 2023 automatically qualify for a waiver of related penalties and interest and need not make an application.

·       Application Requirement: Taxpayers with outstanding principal taxes up to 31st December 2023 must apply via the iTax system and submit a structured payment plan for full settlement of the outstanding principal taxes by 30th June 2025.

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

Taxpayers involved in ongoing tax disputes are encouraged to resolve the disputes through the Alternative Dispute Resolution (ADR) to ensure a swift resolution before the amnesty deadline.

This initiative is a 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 favourable terms and to move forward on a clean slate.

Eligible taxpayers are urged to act promptly in order to take full advantage of this amnesty before the 30th June 2025 deadline.

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