How to Apply for KRA Amnesty

Many taxpayers in Kenya may find themselves struggling with tax penalties, accrued interest, or non-compliance issues that make it difficult to catch up with their obligations. To help resolve such cases and encourage voluntary compliance, the Kenya Revenue Authority (KRA) often offers a tax amnesty program. This initiative allows individuals and businesses to declare previously unreported income, file outstanding returns, or settle tax liabilities without facing hefty fines or prosecution. Understanding how to apply for KRA amnesty can help ease financial pressure and restore a good standing with the tax authorities.

What Is KRA Amnesty?

KRA amnesty is a temporary relief program introduced by the Kenya Revenue Authority to encourage taxpayers to clear outstanding tax liabilities without incurring penalties or interest. The amnesty may cover specific tax periods and applies to income tax, VAT, PAYE, or other categories. By taking advantage of this program, taxpayers are given a clean slate, provided they comply within the stipulated time frame.

Benefits of Applying for KRA Amnesty

• Waiver of penalties and interest
• Opportunity to file past returns without legal consequences
• Improved tax compliance status
• Peace of mind and reduced financial pressure
• Eligibility for tax compliance certificates

Who Is Eligible for KRA Amnesty?

The amnesty program is open to both individual taxpayers and businesses that:

• Have failed to file returns in previous years
• Have undeclared income or unremitted taxes
• Have accrued penalties and interest due to late payment
• Wish to regularize their tax compliance status

However, eligibility may vary depending on the specific terms of the amnesty window announced by KRA. In some cases, only certain years or types of taxes may be eligible.

How to Apply for KRA Amnesty

Applying for KRA amnesty requires a few important steps, most of which can be done online through the iTax portal. Here’s a detailed guide on how to proceed.

Step 1: Log into the KRA iTax Portal

• Visit the official iTax website
• Enter your PIN and password to log in
• If you don’t have an account, you must register first using your KRA PIN

Ensure that your email and contact details are up to date for future correspondence.

Step 2: File Outstanding Returns

To qualify for amnesty, you must file all pending returns for the eligible years. This includes:

• Income Tax Returns
• VAT Returns
• PAYE Returns
• Turnover Tax (for small businesses)

If you didn’t earn any income during a particular period, you can file a nil return. Accurate filing is crucial to avoid rejection or future disputes.

Step 3: Submit a Formal Amnesty Application (If Required)

Depending on the amnesty guidelines, KRA may require applicants to submit a written request or fill out an application form online. This request should include:

• Taxpayer’s full name and KRA PIN
• Details of the tax periods affected
• Explanation of the circumstances that led to non-compliance
• A declaration of intent to comply going forward

This step may also involve uploading supporting documents, especially for large businesses or complex cases.

Step 4: Await Confirmation from KRA

After submission, KRA will review your application and submitted returns. If everything is in order, they will process your amnesty and issue a waiver of penalties and interest. You will be notified through the email associated with your iTax account.

In some cases, KRA may request additional information or clarification before granting the amnesty.

Step 5: Settle Any Principal Tax Owed

If the amnesty program only covers penalties and interest, you may still need to pay the original tax amount owed. KRA may allow this to be paid in full or through an installment plan. Be sure to:

• Check your updated ledger on iTax
• Use the correct payment registration number (PRN)
• Make payments via M-Pesa, bank transfer, or over-the-counter at approved banks

Important Deadlines and Conditions

KRA amnesty programs are time-bound. You must apply and comply within the stated window to qualify. Always check the latest announcement on the KRA website or consult a tax advisor to confirm deadlines.

Additionally, amnesty may not be granted if:

• You fail to submit accurate information
• You don’t settle principal tax amounts (if required)
• You miss the deadline for filing or payment

Tips for a Successful KRA Amnesty Application

• Gather all necessary documentation in advance
• Ensure all previous returns are filed correctly and on time
• Use a certified tax consultant if you’re unsure about figures
• Double-check all submissions on the iTax portal
• Maintain copies of all communication with KRA for your records

Common Mistakes to Avoid

To ensure your application goes smoothly, avoid the following errors:

• Ignoring the need to file returns before applying for amnesty
• Submitting incorrect or incomplete information
• Waiting until the last minute and missing deadlines
• Assuming that once applied, you don’t need to follow up

Remember, KRA treats each application individually, and diligence plays a key role in approval.

How to Check Amnesty Status

After applying, you can monitor the progress of your amnesty request by:

• Logging into your iTax account
• Navigating to Tax Obligation Status
• Checking your ledger to see if penalties and interest have been waived
• Looking for emails or SMS updates from KRA

If delays occur or you’re unsure of the status, contact the KRA call center or visit your nearest tax office.

Applying for KRA amnesty is a valuable opportunity for individuals and businesses to resolve past tax issues and return to good standing with the Kenya Revenue Authority. By following the proper steps filing outstanding returns, submitting an application if required, and settling any principal taxes you can take advantage of the benefits offered under the program. Be sure to stay informed about deadlines, double-check your submissions, and act quickly to avoid missing this limited window of relief. Taking action today could save you thousands of shillings and open the door to a cleaner, more stable financial future.