What is the tax amnesty?
A tax amnesty is a limited opportunity for taxpayers to pay their principal taxes and have their existing penalties and interest waived. It is an opportunity for taxpayers to pay what they owe, with penalties and interest waived. The objective is to address noncompliance, decrease outstanding tax arrears, and give taxpayers a chance to resolve their past tax violations and become law abiding taxpayers.
What is the tax amnesty?
A tax amnesty is a limited opportunity for taxpayers to pay their principal taxes and have their existing penalties and interest waived. It is an opportunity for taxpayers to pay what they owe, with penalties and interest waived. The objective is to address noncompliance, decrease outstanding tax arrears, and give taxpayers a chance to resolve their past tax violations and become law abiding taxpayers.
The Finance Act 2023 introduced a tax amnesty for interest and penalties on tax debts. The amnesty is only granted for interest and penalties up to 31st December 2022 and is effective from 1st September 2023, to 30th June 2024.
Eligibility for the tax amnesty
1. Taxpayers with paid up principal taxes
Taxpayers with paid up principal taxes up to 31st December 2022 shall have existing penalties and interest waived. The amnesty shall be automatic and taxpayers will not be required to apply.
2. Taxpayers with outstanding principal taxes
Taxpayers with outstanding principal taxes up to 31st December 2022, must settle the debt by 30th June, 2024 to qualify for a waiver on penalties and interest. They shall be required to apply noting their proposed payment plan.
Applying for the amnesty
Applications are made on the KRA i-tax platform under debt and enforcement category.
Exclusion from tax amnesty
- Interest and penalties occurring as a result of tax avoidance do not qualify for tax amnesty.
- Penalties and interest for tax debts accrued after 31st December 2022 are ineligible.
Do you have any tax penalties? Apply for the amnesty. Contact us for assistance law@cmsmeclub.com
Published on Aug. 22, 2024, 1:10 p.m.