For those wondering what Tax Amnesty is; Imagine owing someone money and negotiating to pay a reduced amount, with the remainder forgiven. Tax amnesty operates on a similar principle, offering taxpayers a limited-time chance to settle their tax debts under more favorable terms provided by the government. Kenya introduced a tax amnesty through the Finance Bill 2023, available to all Kenyans. This opportunity allows taxpayers to clear their tax liabilities by filing returns under these beneficial conditions.

This amnesty applies to individuals who have accrued penalties and interest but no outstanding principal taxes for periods up to December 31, 2022. It also covers those who settle their overdue principal tax debts by June 30, 2024.

Curious about how to apply for tax amnesty using iTax? Let’s walk through the process in this article:

How to apply Tax Amnesty on Itax

The process is entirely through your Itax portal, The following is the process of applying for tax amnesty in ITAX.

Access iTax

1. Open any web browser and log in to ‘iTax’.
2. Navigate to the ‘Debt and enforcement’ menu and choose ‘iTax Amnesty Application’.

Select Tax Obligation

1. Under section ‘A’, select the specific tax obligation (e.g., Income Tax- Withholding). This will auto-fill the amnesty details related to that obligation.

Propose Instalment Plan

1. In section ‘B’, propose the number of instalments and their frequency. The system will calculate the amount for each instalment.

1. Review the terms and conditions, then click ‘Submit’ to proceed.

Confirmation

1. Click to agree to the terms and conditions again and submit your application.
2. The iTax system will generate an acknowledgement of your amnesty application, including details of your amnesty and payment plan.

Payment

1. Generate payment slips for the respective tax obligation and tax period through iTax.
2. Proceed to make payments via bank transfer or M-Pesa Pay bill 222222.

Completion

1. Once payment is confirmed in iTax, penalties and interest for the specified period will be waived.
2. An amnesty certificate will be issued by the iTax system.

These steps outline the process to successfully apply for tax amnesty using the iTax platform in Kenya.