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KRA Offers Taxpayer Relief with Amnesty on Penalties and Interest for Outstanding Tax Debts

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The Kenya Revenue Authority (KRA) has announced a new tax amnesty for individuals and businesses with outstanding tax debts, providing an opportunity for taxpayers to clear their liabilities without facing penalties or interest.

The Tax Procedures (Amendment) Act, 2024, introduced the tax amnesty, which applied to interest, penalties, or fines on tax debts accrued up until 31st December 2023.

The current amnesty program has already taken effect from 27th December 2024 and will run through to 30th June 2025.

Eligibility and Process

According to the KRA, taxpayers who have already paid all principal taxes due by 31st December 2023 are eligible for an automatic waiver of penalties and interest, without the need to submit a formal amnesty application.

However, those who have outstanding taxes for periods up to 31st December 2023 and are unable to make a lump sum payment will need to apply to the Commissioner for Domestic Taxes.

They will be required to propose a payment plan for the remaining principal taxes, with full settlement expected by 30th June 2025.

Taxpayers are encouraged to take advantage of this window to resolve any outstanding tax obligations, avoiding the burden of additional penalties or interest.

“The introduction of the tax amnesty program is aimed at encouraging taxpayers to clear their debts and start afresh, fostering a more compliant taxpaying culture,” said the Commissioner for Domestic Taxes. “We urge all taxpayers to utilize this opportunity to settle any outstanding liabilities and benefit from the waiver.”

How to Apply

For further clarification or to seek guidance, taxpayers can visit their nearest Tax Service Office (TSO) or reach the KRA’s customer service at Tel: 254(020) 4 999 999 or +254 (0711) 099999.

Email inquiries can be directed here.

This initiative is expected to provide significant relief to taxpayers and help boost the country’s revenue collection efforts.

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