How to apply for tax amnesty

According to the International Monetary Fund (IMF) E-library ,tax amnesty is defined as a limited-time offer by the government to a specific group of tax payers to pay a defined amount, in exchange for forgiveness of a tax liability relating to a previous tax period, as well as freedom from legal prosecution. The tax liability includes penalties and interest.

In compliance with the Kenya Revenue Authority (KRA),the Finance Act 2023, introduced the Section 37E to the Tax Procedures Act ,2015.It granted a tax amnesty on penalties and interest on tax debt for periods up to December 31,2022.The Tax Amnesty began on September,1,2023 and will be available until June 23, 2024.

 

How to apply for tax amnesty

Start by logging into the iTax portal and selecting on the Amnesty Application tab that is under the Debt and Enforcement  and make the application.

Then click on the link shared through your SMS or Email which will re-direct you to the iTax page to make the application.

If you encounter any queries, you can visit the nearest Tax Service Office (TSO) or KRA help desk located at Huduma Centre for assistance on the application process.

Requirements for tax amnesty

However, there are requirements to meet in order to qualify for the application. They include the following:

An individual can have penalties and interest but has no principal taxes owing for periods up to December 30,2022.

An individual can have a principal tax accumulating up to December 31,2022 but pays the outstanding principal debt by June 23, 2024.

In conformity with the Kenya Revenue Authority, in the application for the Tax Amnesty  the taxpayer:

May make full payment of the principal tax due or enter into a payment plan agreement with the commissioner.

The system fully displays the taxpayer’s debt status and they will be required to apply for the amnesty by selecting the periods which qualify for the amnesty.

For the taxpayer who opts to settle the outstanding principal tax in installments will indicate the frequency of payments in the system embedded payment plan agreement.

The payment plan agreement will not extend beyond June 30, 2024.If there are any interest and penalties relating to the principal tax under the tax amnesty period that are still unpaid after June 30,2024 will not qualify for the amnesty.

The Tax Amnesty will be granted upon the payment of the final instalment as agreed in the payment plan agreement.

Accepting the terms and conditions of the tax amnesty means the taxpayer agrees to commit fully to the payment plan agreement.