TAXPAYER GUIDELINES ON TAX AMNESTY

Introduction

The Finance Act 2023 introduced a tax amnesty for interest and penalties on tax debt under Section 37E to the Tax Procedures Act, 2015. The amnesty is applicable to:

• A person or company with penalties and interest but no principal taxes owing for periods up to 31^st Dec 2022 and
• A person who has principal tax accrued up to 31^st December 2022 but pays the outstanding principal tax debt by 30^th June 2024.

Eligibility

All taxpayers who do not have principal tax due for periods up to 31^st December 2022 but have penalties and interest due shall qualify for the tax amnesty. The taxpayer with outstanding principal tax debts applies for the amnesty.

Effective Date

The tax amnesty commences on 1^st September 2023 and shall remain in force until 30th June 2024.

Basis of processing the Amnesty

The tax amnesty shall be processed on the basis of the tax period and tax obligation.

General Conditions for Remission of penalties and interest

A person qualifies for remission of interest and penalties under the following conditions:

• Only interest and penalties that relate to principal tax due for the periods up to 31^st December 2022 shall be granted amnesty upon full payment of the principal tax on or before 30^th June 2024. 
• Taxpayers with tax liabilities for periods prior to 31^st December 2022 under return amendment, reconciliation or with other pending system issues, must first liaise with their respective KRA Officials to conclude the process. 
• Taxpayers with tax liabilities for periods up to 31^st December 2022 which are under a dispute process may engage the Commissioner for the settlement of the disputes and agree on a payment plan for the agreed amounts. In order to qualify for the tax amnesty.