KRA announces a tax penalty waiver for  all Kenyans

KRA announces a tax penalty waiver for all Kenyans

KRA announces a tax penalty waiver for all Kenyans

Humphrey Wattanga, the commissioner general of the Kenya Revenue Authority, said on Monday that if the principal tax is paid in full, the taxman will forgo the payment of tax interest that accrued before December 2022.The Tax Amnesty Program outlined in the Finance Act 2023 is consistent with the tax interest write-off, according to a statement from Wattanga.

The action is anticipated to increase taxpayers’ voluntary tax compliance across the nation.”KRA has achieved great progress in this area and is always working to increase taxpayers’ voluntary compliance. The Tax Amnesty Program, which was established by The Finance Act of 2023, is one of the main pillars to increase voluntary compliance, he said.

“In the spirit of returning to taxpayers what has been taken from them, we are calling upon all who have accrued interests up to December 2022 to pay up the principal taxes due, so that we may write off the penalties and interests accrued.”The Finance Act states that the amnesty program, which may be applied for on KRA’s iTax system, will be available from September 1, 2023, until June 30, 2024.

People who have accrued penalties and interest but no principal taxes for the time periods up to December 31, 2022, or people who have accrued principal tax but have paid the principal tax, are eligible for the program.The Act also stipulates that a proposed payment schedule for the unpaid principal taxes must be submitted along with the amnesty application.

The development is consistent with President William Ruto’s intention to waive outstanding penalties on unpaid taxes incurred prior to January 1, 2023.Beginning in September, the Head of State stated that Kenyans’ worries about accumulated interests led to his decision to waive the fines.