Tax Amnesty On Interest And Penalties For Periods Up To 31st December 2022

Notice from KRA

Following the implementation of the Finance Act 2023,  a tax amnesty on interest and penalties on tax debt for periods up to 31st December, 2022 was introduced. The tax amnesty will run from 1st September, 2023 to 30th June, 2024.

The tax amnesty shall be implemented as follows –

1. Where a person has paid all the principal taxes that were due by 31st December, 2022, the person will be entitled to automatic waiver of the penalties and interest related to that period and will not be required to make an amnesty application.
2. 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.