Tax Amnesty In Kenya: Intricacies Of The Programme

Introduction 

• The 2023/2024 budget tabled on 15th June 2023 provides for a tax amnesty programme which commenced on 1st September, 2023 and shall run up to 30th June 2024.  
• It provides for granting 100% waiver of all penalties and interests on principal taxes accrued up to December 31, 2022 where eligibility is only on penalties and interests on tax debts. 

Who qualifies? 

One will be eligible to enjoy the tax amnesty in two prongs in the efforts by the taxman to ensure all are involved.  

• Firstly, if they have no principal taxes owed to KRA but there are outstanding penalties and interest for periods up to 31st December, 2022. One will therefore be entitled to automatic waiver of the penalties and interests related to that period and will not be required to make an amnesty application.  
• Secondly, where one has not paid all the principal taxes accrued up to 31st December, 2022, they will be required to apply for the amnesty and propose a payment plan for any outstanding principal taxes which should be paid not later than 30th June, 2024. 

What are the principal taxes? 

• The scope of tax heads that qualify for the tax amnesty is limited to tax laws under the Tax Procedures Act, 2015.  

How to apply 

One applies for tax amnesty by either: 

1. logging into their iTax page and going to Amnesty application tab under Debt and Enforcement and making the application; or 
2. Clicking in the link shared through their email or SMS which will redirect them to their iTax page to make the application; or 
3. Visiting the nearest Tax Service Office (TSO) or KRA help desk at Huduma Centre for assistance on the application process. 

Conclusion 

Whether you’re a business owner or an individual tax payer, the tax amnesty program is your chance to reconcile your tax obligations. Take advantage of this opportunity before the window closes.  

For further assistance on your tax obligations or any queries on taxes in Kenya, please reach out to us on law@cmadvocates.com  for further assistance.