The taxman has waived KES140 billion in penalties, interest and fines under the ongoing Tax Amnesty Program, which started on 27 December last year.

In an update on Monday, the Kenya Revenue Authority (KRA) said 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.

The undertaking is part of a broad plan by KRA to help taxpayers resolve past tax issues without facing the full financial burden. The program runs until 30th June 2025.

KRA said since the re-launch of the Tax Amnesty program, a total of KES4 billion in principal tax payments has been collected.

The programme seeks to ensure that 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.

At the same time, 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.

However, tax debts arising from 1st January 2024 and beyond do not qualify for amnesty. Equally, all the 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, KRA stated, adding that this initiative is a part of KRA’s broader efforts to foster voluntary compliance and provide relief to taxpayers burdened by past debts.