VTDP shall apply to tax liabilities accrued in the 5-year period from 1st July, 2015 to 30th June, 2020 covering the following tax heads:

• Individual income tax
• Corporate tax
• PAYE
• Withholding income taxes
• Capital Gains Tax
• Value Added Tax
• Withholding VAT
• Excise duty
• Turnover Tax
• Monthly Rental Income Tax  

1. A person who wishes to take advantage of VTDP shall log into the iTax portal, and select the “Voluntary Tax Disclosure Program” under the returns menu;
2. Select the applicable tax obligation for which relief is being sought;
3. Under Section A, capture the return period and upload the relevant supporting documents;
4. Under Section B, capture the undeclared turnover, undeclared expenses, undeclared gross amount and the tax payable (for payment registration where applicable) and submit application;
5. The applicant shall receive an acknowledgement slip via registered email address and a verification task shall be created at the respective Tax Service Office (TSO);
6. Upon approval/rejection of the application, the applicant will receive approval/rejection notice via their registered email address;
7. For approved cases, the taxpayer shall generate a payment slip (PRN) as per the filed VTDP return and make the payments accordingly;
8. A VTDP certificate will be issued to the applicant upon payment of the disclosed taxes. 

A diagrammatical step-by-step guide is provided in the KRA website.

No. A person granted   relief under VTDP shall not be prosecuted for tax liabilities disclosed under the programme. However, where the applicant fails to disclose the material facts in respect of the relief granted, the Commissioner may withdraw the relief, assess additional tax or commence prosecution.

Where taxpayers fail to pay their taxes or file returns by stipulated due dates, penalties and interest are charged in accordance with the law. The penalty and interest are tax that are payable. However, they may apply to the Commissioner to remit such penalties and interest.

This provision covers only penalty and interest. The principal tax has to be settled in full.

This application by a taxpayer for consideration for penalties and interest to be vacated is what is known as a waiver application. The Commissioner may remit the penalty and interest in whole or partially, depending on justification and evidence presented.

 Penalty and interest charged under fraud or tax evasion are excluded from consideration for waiver.

Tax waiver is provided for under the Tax Procedures Act section 89 (7) and Regulation 85 of the East African Community Customs Management Regulations(EACCMR) 2010 pertaining to waiver of Customs Warehouse Rent. An application can be lodged for waiver of penalty and interest upon full settlement of principal tax. Whereas the taxpayer is allowed to apply for waiver, there is no guarantee that the request will be granted.

A tax amnesty is periodic and targeted for a class of persons or activities with an aim of addressing a specific problem or achieving a specific objective e.g. bringing previously untaxed income into the tax bracket. The percentage of waiver of penalty and interest under tax amnesty is guaranteed, based on prescribed conditions that come with each tax amnesty opportunity.

All the principal taxes must be fully paid before an application can be lodged for consideration for waiver. The taxpayer has to be compliant in other taxes with regard to filing and payment of taxes. The applicant’s past compliance record is taken into account when processing the waiver application.

1. For iTax assessments: Applications are lodged on iTax through the taxpayer’s profile.
2. For pre-iTax assessments: Manual applications are to be presented to the taxpayer’s respective Tax Service Office (TSO).

All applications should state reason(s) why the taxpayer should be considered for waiver, giving evidence to support each of the reason(s).

Grant of waiver is dependent on mitigating grounds presented in the taxpayer’s application. The supporting evidence will therefore depend on the mitigating grounds presented in the application.

Applications for removal of erroneous penalty and interest are presented by the taxpayer to the Debt Office in the taxpayer’s respective TSO. The debt officer will examine the application as well as evidence provided and if, the application meets all the requirements, the officer will initiate the request for reversal of erroneous penalty and interest on iTax, in line with the procedure guidelines.

Applications can be followed up with the Debt Unit offices at the taxpayer’s respective TSO.

1. For iTax waiver applications: Quoting the acknowledgement number.
2. For manual applications: Using the stamped copy of the waiver application.

Taxpayers are notified by KRA of the decision once an application has been processed to conclusion.

• For iTax applications: An email sent is to the taxpayer’s registered email address as per KRA records.
• For pre-iTax assessments: A letter is sent to the taxpayer’s registered postal address as per the taxpayer’s contact information with the KRA records. A scanned copy of the decision is also sent to the taxpayer’s email address.

Where a waiver application is declined or granted partially, the taxpayer is required to make full payment of the amount that has not been waived. The notification issued by KRA will specify the amount due and the period within which to make payment.

The Commissioner shall enter into an agreement with the taxpayer setting out the terms of payment of the tax liability and the payments shall be made within one year.

Amendment of the original VTDP Return may be made once at any time within the VTDP payment arrangement period provided the amendment does not result into a refund of taxes already paid under the programme.

A Person shall not be eligible for VTDP where: -

1. the person is under audit or investigation for the undisclosed tax, or has been served with a notice of intention to investigate or carry out an audit/compliance check for the undisclosed tax; or
2. the person is a party to an ongoing litigation in respect to the tax liability or any matter relating to the tax liability

1. A Person shall not be eligible for VTDP where: -
2. the person is under audit or investigation for the undisclosed tax, or has been served with a notice of intention to investigate or carry out an audit/compliance check for the undisclosed tax; or
3. the person is a party to an ongoing litigation in respect to the tax liability or any matter relating to the tax liability

1. It provides an avenue for taxpayers with previously undisclosed taxes to disclose and pay without imposition of punitive penalties and interest.
2. The program is aimed at enhancing revenue collection through improved compliance by bringing more taxpayers into the tax net.

A successful applicant shall be issued with a VTDP certificate, which shall serve as evidence that the person took advantage of the VTDP for the taxes, tax period(s) and tax obligation specified in the certificate.

1. VTDP only applies to a disclosure resulting in payment of taxes. The person shall not be granted relief which may result into a refund of taxes paid on or before the VTDP window or which may lead to an increase in their tax credit or loss carried forward.
2. A person granted relief under the programme shall not be prosecuted on the same set of facts in respect of the fully disclosed and paid taxes.
3. A person granted relief in accordance with the provisions of the VTDP shall not appeal or seek any other remedy with respect to the taxes, penalties and interest remitted by the Commissioner.

The Commissioner shall enter into an agreement with the taxpayer setting out the terms of payment of the tax liability and the payments shall be made within one year.

Employees and close relatives of the Kenya Revenue Authority are not eligible to take part in the auction process.