This article focuses on how to apply for a KRA penalty waiver. KRA imposes penalties on registered taxpayers who fail to comply with the authority’s tax regulations. However, one is allowed to apply for a waiver of penalty or interest where they meet the specified conditions.
All the principal taxes must be fully paid before an application can be lodged for consideration for a waiver. The applicant’s past compliance record is taken into account when processing the waiver application.
For iTax assessments, applications are lodged on iTax through the taxpayer’s profile. For pre-iTax assessments, manual applications are to be presented to the taxpayer’s respective Tax Service Office. All applications should also state reasons why the taxpayer should be considered for a waiver, giving evidence to support each of the reasons.
Grant of waiver is dependent on mitigating grounds presented in the taxpayer’s application. The supporting evidence will depend on mitigating grounds presented in the application. The applications can be followed up with the debt unit offices at the taxpayer’s respective TSO.
How To Apply For KRA Penalty Waiver
1. Go to the KRA website/online portal via www.itax.kra.go.ke.
2. Log in using your KRA PIN and password.
3. Click on debts and enforcement.
4. Click on apply for a waiver of penalties and interests.
5. Applicant information will be automatically populated. You only need to fill in the details of the waiver.
6. Choose the type of tax and tax obligation from the options given e.g Income Tax, Individual or VAT. For the type of tax select penalty, interest or both. Details of the penalty will be auto-populated.
7. Confirm whether you have uploaded the waiver letter.
8. Click submit to upload the waiver application document.
9. Proceed to download the acknowledgement receipt from KRA.
10. The acknowledgement receipt is a confirmation that you have applied for a waiver on penalties. It can also be used to track the status of the penalty waiver application.
Check out: How To Check If You Have KRA Penalties