KRA Waives Penalties and Interests For All Kenyans
Commissioner General of the Kenya Revenue Authority Humphrey Wattanga announced on Monday that the taxman will waive tax interest accrued prior to December 2022 if the principal tax is paid in full.
Wattanga stated in a statement that the tax interest write-off is consistent with the proposed Tax Amnesty Program in the Finance Act 2023.
The measure seeks to increase voluntary tax compliance among taxpayers nationwide.
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KRA seeks to improve voluntary compliance among taxpayers and has achieved significant progress in this regard.
The Tax Amnesty Program, introduced through The Finance Act 2023, plays a crucial role in enhancing voluntary compliance.
As a gesture of appreciation to taxpayers, individuals with accumulated interests up to December 2022 are urged to settle their principal tax obligations.
This will enable the cancellation of penalties and accrued interests.
According to the Finance Act, the amnesty program will operate from September 1, 2023 to June 30, 2024. Kenyans will apply through the iTax system of the KRA.
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Individuals who have accrued penalties and interest but no principal tax for periods up to December 31, 2022 are eligible for the program, as are individuals who have accrued principal tax interest and have paid the principal tax.
The Act also stipulates that the application for amnesty must be accompanied by a proposed payment plan for the delinquent principal taxes.
This development is consistent with President William Ruto’s objective of waiving accrued penalties on taxes due before January 1, 2023.
Beginning in September, the Head of State says that his decision to suspend the penalties is due to Kenyans’ concerns regarding accrued interest.
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Ruto added that the exemption will lighten the load on Kenyans and is consistent with the government’s plan for a fair and inclusive economy.
The announcement made earlier indicated that from September 1, 2023, to June 2024, taxpayers would have the option to clear only the principal amount of their outstanding tax debts incurred before January 1, 2023.
KRA will waive Penalties and interests during this nine-month period. This offer is to encourage the taxpaying public to take advantage of the opportunity.
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KRA Waives Penalties and Interests For All Kenyans