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KENYA: THE KRA TAX AMNESTY 100% WAIVER EXPIRES IN FOUR MONTHS

By Andrew Oduor,Alex Mathini Wednesday, September 01, 2021
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The Voluntary Tax Disclosure Program (VTDP) program launched by the Kenya Revenue Authority through the Finance Act 2020 is designed to assist tax payers achieve tax compliance, by allowing them to voluntarily declare their historical tax liabilities to the Kenya Revenue Authority (“KRA”) and settle the principal tax, while obtaining the benefit of not having to pay, under certain conditions, the resulting penalties and Interest.

Who qualifies?

All taxpayers qualify for the VTDP, provided that:

  1. The tax liabilities were accrued by the taxpayer within a period of 5 years prior to 1 July 2020 (1 July 2015 to 1 July 2020);
  2. The taxpayer is not under audit or investigation and is not a party to ongoing litigation in respect of the tax liabilities or any matter relating to the tax liabilities; and
  3. The taxpayer has not has been notified of a pending audit or investigation by the Commissioner.

How does it benefit you?

Tax payers who opt for the VTDP will be entitled to:

  • 100% waiver, if the principal tax is disclosed and paid within the calendar year 2021;
  • 50% waiver, if the principal tax is disclosed and paid within the calendar year 2022; and
  • 25% waiver, if the principal tax is disclosed and paid within the calendar year 2023.

What do you need to do?

If you would like to take advantage of the VTDP, you should:

  • Conduct an internal tax review to ascertain your tax status particularly for non-disclosures or incorrect reporting;
  • Arising from the review, quantify the exposure and make the declaration to the KRA as soon as possible, in order to obtain the full benefit of the relief available.

How we can help

Bowmans has a fully-fledged tax team that understands the unique tax issues that apply to each industry and is willing to support you on a wide range of matters pertaining to the VTDP. This includes undertaking a review of your tax compliance position to ascertain whether there are any tax liabilities, advising on whether the tax liabilities qualify for the VTDP, and assisting with remedying any non-compliance including lodging an application for relief on your behalf under the VTDP.