On 1 September 2023, the Kenya Revenue Authority (KRA) released a public notice regarding a tax amnesty on interest and penalties introduced in the Finance Act 2023.
The Kenya Revenue Authority (KRA) would like to notify taxpayers that the Finance Act-2023 introduced a tax amnesty on interest and penalties on tax debt for periods up to 31st December 2022. The tax amnesty will run from 1st September 2023 to 30th June 2024.
The tax amnesty shall be implemented as follows –
- Where a person has paid all the principal taxes that were due by 31st December 2022, the person will be entitled to an automatic waiver of the penalties and interest related to that period and will not be required to make an amnesty application.
- Where a person has not paid all the principal taxes accrued up to 31st December 2022, they will be required to apply to the Commissioner for amnesty on interest and penalties and propose a payment plan for any outstanding principal taxes which should be paid not later than 30th June 2024.
The Finance Act, 2023 also deleted the tax waiver and abandonment provisions hence taxpayers are encouraged to take advantage of the tax amnesty. Taxpayers are advised to visit their nearest Tax Service Office to make payment arrangements for outstanding principal taxes and for any further clarification.
