Kenya Revenue Authority offers waivers on tax penalties

Kenya Revenue Authority (KRA) relieves taxpayers that had tax penalties for the past five years.

The Times Tower located in Nairobi CBD

KRA announced that taxpayers will get either full or partial relief on penalties and interests on taxes that they are yet to disclose. The program is set to begin from January 1 to December 31, 2023.

Additionally, program, Voluntary Tax Disclosure Program (VTDP) was launched through the Finance Act of 2020 and it seeks to grant relief on the penalties and interest on tax liabilities between July 1, 2015 and June 30, 2020.

VTDP will apply to all tax liabilities accrued or derived in the specified period. In addition, VTDP will include Excise Duty, Value Added Tax, Corporate Tax, Income Tax, Monthly Rental Income Tax, Withholding Tax, Withholding Income Tax, Turnover Tax, Capital Gains Tax, and PAYE.

According to Kenya Revenue Authority, the program will provide relief to taxpayers due to the hard times that were brought about by Covid-19 pandemic.

In addition, they say Kenyans who make full payment of the taxes in 2021 will get 100 per cent relief while those who pay in 2022 will get 50 per cent relief. Also, for payments that will be made in 2023, they will get 25 per cent relief. This will involve relief on penalties and interests.

However, taxpayers will not be eligible to apply for the program if they are involved in an ongoing litigation involving tax liability.

Similarly, taxpayers who pay their taxes before the program ends will be issued with a VTDP certificate.

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Written by Hello News

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