The Finance Act 2023, while removing powers of the Commissioner to waive penalties and interest, has introduced a tax amnesty for interest and penalties owed for periods up to 31st December 2022, effective from 1st September 2023 up to 30th June 2024. 
We answer some of our most frequently asked questions on the amnesty programme below:

Who is eligible for the amnesty?

All taxpayers, who have penalties and interest arising from unpaid principal taxes accrued up to 31st December 2022 are eligible to apply for the amnesty, provided that the principal taxes are paid by 30th June 2024. 

Which tax liabilities are covered under the amnesty?
The amnesty shall apply to all taxes under the Tax Procedures Act, 2015. These are:
•    The Income Tax Act;
•    The Value Added Tax Act;
•    The Excise Duty Act; and
•    The Miscellaneous Fees and Levies Act.

What are the conditions for the amnesty to apply?

A taxpayer needs to satisfy the following conditions for them to apply for the amnesty:
1.    The unpaid penalties and interest relate to periods prior to 31st December 2022; and
2.     The principal tax, if any, needs to be settled in full by 30th June 2024. 

What if the principal tax has already been settled?

Taxpayers who have settled the principal tax on or before 31st December 2022, need not apply for the amnesty. They would qualify for an automatic amnesty. Taxpayers merely need to keep checking their iTax ledgers to check whether these penalties and interest have been waived, given that the KRA is currently working on the configuration of this module on iTax. The automatic amnesty also applies to taxpayers who have penalties and interest arising from late filing of returns or any erroneous penalties or interest charged on iTax, provided that the principal tax has been settled by 31st December 2022.

What if the principal tax is not settled in full by 30th June 2024?

Where taxpayers are unable to fully settle the principal tax by 30th June 2024, penalties and interest that accrue on the unpaid amounts would be chargeable.

What if the principal tax arises from an assessment from the KRA?

Provided that the principal tax is settled by 30th June 2024, and the assessments relate to periods prior to 31st December 2022, a taxpayer is entitled to take advantage of the amnesty, at any stage of the dispute with the KRA (at objection, Tax Appeals Tribunal and the Courts), including where the taxpayer and the KRA have successfully agreed on a compromise under the Alternative Dispute Resolution Framework. 

When can a taxpayer be denied the amnesty?

A taxpayer may only be denied from taking advantage of the amnesty if:
1.    The principal tax remains unpaid by 30th June 2024;
2.    The penalties and interest relate to periods after 31st December 2022; and
3.    The penalties and interest arose from an assessment raised due to fraud, tax avoidance or tax evasion by the taxpayer.

How can a taxpayer apply for the amnesty?

For taxpayers who have outstanding principal taxes relating to periods up to 31st December 2022, but settle or intend to settle the same by 30th June 2024 shall apply to the Commissioner for amnesty, together with a proposed payment plan for the outstanding principal taxes. A taxpayer must be prepared to honour the agreed payment plan. The payment plan should not extend beyond 30th June 2024, since any penalties and interest that pertain to principal tax under the amnesty period that remains unpaid after the expiry of the amnesty period shall not qualify for amnesty. The amnesty shall be granted upon the payment of the final instalment as committed in the payment plan. 

Any taxpayer who qualifies and wishes to take advantage of the amnesty, must make an application on iTax indicating the tax obligation and the period to which the liability relates. 

Where a taxpayer has pending principal tax liabilities accrued up to 31st December 2022 that have arisen due to amendment of returns, reconciliations or other pending system issues must first liaise with their respective Tax Service Office to conclude the outstanding matters. 


Once the amnesty period ends, there is no framework in law (as yet), which would allow a taxpayer to obtain a waiver of penalties and interest. Therefore, eligible taxpayers are strongly advised to take advantage of the existing amnesty. 


Our tax team is available to assist any taxpayer who wishes to take advantage of the amnesty programme. You can reach out to them through email on [email protected], or directly through your contacts at RSM.


This newsletter has been prepared by RSM (Eastern Africa) Consulting Ltd, and the views are those of the firm, independent of its directors, employees and associates. This newsletter is for general guidance, and does not constitute professional advice. Accordingly, RSM (Eastern Africa) Consulting Ltd, its directors, employees, associates and its agents accept no liability for the consequences of anyone acting, or refraining from acting, in reliance on the information contained herein or for any decision based on it. No part of the newsletter may be reproduced or published without prior written consent. RSM (Eastern Africa) Consulting Ltd is a member firm of RSM, a worldwide network of accounting and consulting firms. RSM does not offer professional services in its own name and each member firm of RSM is a legally separate and independent national firm.