KRA waives Sh244.7 billion in tax penalties and interests
The Kenya Revenue Authority (KRA) has announced the waiver of Kes244.7 billion in penalties and interests under the ongoing Tax Amnesty Programme, which has already benefitted over 500,000 taxpayers in Kenya.
The plan, which has been in effect to regularise tax compliance status, has received a positive response from taxpayers across the country, the KRA said in an update.
According to KRA, taxpayers have stepped forward to pay their overdue principal taxes to the tune of Kes20.8 billion. Additionally, a total of Kes28.7 billion has been self-declared as unpaid taxes by participating individuals and entities.
Under the Tax Amnesty Programme, taxpayers who have defaulted on filing and paying their taxes have been granted relief, with Kes244.7 billion waived in penalties and interests so far. This initiative is expected to incentivize more taxpayers to come forward and fulfil their tax obligations.
Encouraging further participation, KRA is urging taxpayers in Kenya who have not been filing their returns to do so before the deadline on 30th June 2024. Additionally, taxpayers who have accrued penalties and interest on their unpaid principal taxes are encouraged to take advantage of the amnesty and clear any outstanding debt by the same date.
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The Tax Amnesty Programme
The Tax Amnesty Programme was introduced through the Finance Act of 2023, allowing taxpayers to benefit from amnesty on penalties and interest accrued for periods up to 31st December 2022, provided their respective principal taxes are fully paid by 30th June 2024.
The taxman said there would be no further amnesties, waivers, or write-offs on penalties and interests after the deadline.
Notably, the Tax Amnesty does not extend to customs and import duties, and it excludes interest and penalties accrued after 30th December 2022.
“The tax amnesty programme aims to enhance compliance and revenue mobilization while giving taxpayers with tax disputes a leeway to benefit from the existing Alternative Tax Dispute Resolution framework,” KRA explained.
