The Kenya Revenue Authority (KRA) has made a significant announcement, offering a lifeline to taxpayers with outstanding tax debt.

In a public notice released on Friday, the KRA unveiled a tax amnesty initiative in accordance with the Finance Act of 2023.

This move aims to alleviate the burden of accumulated interest and penalties on tax debt for periods leading up to December 31, 2022.

"The Kenya Revenue Authority (KRA) would like to notify taxpayers that the Finance Act, 2023 introduced a tax amnesty on interest and penalties on tax debt for periods up to 31st December, 2022," the public notice read.

"The tax amnesty will run from 1st September, 2023 to 30th June, 2024."

Read More

  1. KRA grants KenGen a Sh1.43 billion tax waiver after decade-long dispute
  2. Persistent KRA customs system outages stall cargo clearance, cut revenue
  3. KRA calls for mobile number updates as part of ongoing tax system overhaul

Under the provisions of the tax amnesty, taxpayers will benefit in two specific scenarios.

Taxpayers who have paid all the principal taxes that were due by December 31, 2022 will be entitled to automatic waiver of the penalties and interest related to that period and therefore are not required to submit any amnesty application.

On the other hand, taxpayers who have not paid all the principal taxes accrued up to December 31, 2022 will be required to apply to the Commissioner for amnesty on interest and penalties and propose a payment plan for any outstanding principal taxes.

These outstanding principal taxes must be paid no later than June 30, 2024.

The authority reminded taxpayers that the Finance Act, 2023  also led to the removal of tax waiver and abandonment provisions.

KRA also emphasized the importance of this initiative, signalling that it offers a limited-time opportunity for taxpayers to rectify their financial obligations without the burden of additional penalties and interest.

"The Finance Act, 2023 also deleted the tax waiver and abandonment provisions hence taxpayers are encouraged to take advantage of the tax amnesty," KRA urged.

Taxpayers who have been grappling with unpaid taxes are urged to promptly visit their nearest Tax Service Office to arrange for payment of outstanding principal taxes and to seek any necessary clarifications.

The tax amnesty marks a significant step towards a more equitable tax system in Kenya, as it aims to provide relief to taxpayers while ensuring the government continues to collect the revenues necessary to support public services and development initiatives.