Kenya Revenue Authority (KRA) has appealed to all taxpayers to take advantage of the ongoing tax amnesty on interest and penalties that accrued up to December 31, 2022.
The Authority estimates that it will collect over Sh50 billion through the taxpayer amnesty programme unveiled on September 1, 2023, and intended to end on June 30, 2024.
Mr. Ouru Nyamori, Acting Chief Manager of the Domestic Taxes Department in the Western Region, noted that the amnesty was one of the many tax reforms incorporated into the Finance Act 2023.
Nyamori, who represented the Western Regional Coordinator, Patience Njau, at a media roundtable held in Kisumu County on Tuesday, stated that taxpayers who clear the outstanding principal taxes for the period under review will have their accrued penalties and interest vacated.
“The 100% waiver is open to everyone. We appeal to Kenyans to fulfil their obligations by filing returns at the right time to automatically qualify for the waiver. Those with pending taxes need to clear the outstanding principal tax or visit our offices to negotiate for a payment plan to have their penalties and interest written off,” Nyamori assured.
He encouraged taxpayers to seize the opportunity early enough and avoid a last-minute rush to gain from the short-window tax amnesty.
“Do not wait until the last month, June 2024, to start the application process. You stand to enjoy a longer repayment period if you initiate a payment plan with KRA today. This will ensure you benefit maximally from the programme before the deadline expires,” Nyamori observed.
The payment plan agreement, Nyamori added, must not extend beyond June 30 next year to qualify for the amnesty.
“Taxpayers with pending principal taxes that will remain unpaid after the lapse of the amnesty period would be forced to pay the outstanding principal taxes and 100% of the corresponding penalties and interest,” he stated.
Through the initiative, the taxman also seeks to help taxpayers clean up their tax ledgers and regularise their tax affairs to enhance tax compliance rates in the country.
Nyamori pointed out that the amnesty applies to all domestic taxes, including value-added tax (VAT), pay-as-you-earn (PAYE), excise duty, withholding tax, and corporate income tax.
However, the amnesty excludes interest and penalties imposed on tax avoidance and all penalties and interest relating to tax debts accrued for periods after December 31, 2022.
By Robert Ojwang’
