A great many people appear not genuine to figure out how to apply for the KRA waiver. The idea of the Kenya Revenue Authority enforcers coming to search for you should make you need to become familiar with the procedure. What a great many people overlook is that filing taxes is a resident’s duty. Be that as it may, when they don’t, it pulls in punishments. For whatever length of time that you have not taken care of those punishments, you owe the government. You can apply for a waiver to have the punishments expelled.
KRA tax penalty is a fine charged based on the failure of a
person to file his or her annual returns or failing to pay taxes. Failure to
file your returns comes at a cost, which is referred to as tax penalties. A
non-compliant taxpayer can request a tax waiver; not to pay certain penalties
for a given tax period. A penalty exemption will be granted if reasonable cause
exists. Reasonable cause happens from circumstances beyond the taxpayer’s
control. Failure to file returns because of cases such as unemployment or
sicknesses can provide good cause to seek exemption. However, getting your
penalties waived is not a guarantee.
What is a Penalty Waiver?
Most people have been asking, what is a KRA waiver? This is a
non-compliant taxpayer request not to pay certain penalties for a certain tax
period. A penalty exemption will be granted if reasonable cause exists.
Reasonable cause happens from circumstances beyond the taxpayer’s control.
How to know if you have a KRA penalty
To know whether you have a KRA penalty, just log into your
KRA iTax account; under ‘Debt and Enforcement’, click on ‘Request for Waiver of
Penalties and Interests’. Under ‘Details of waiver’, click on ‘Tax obligation
(Income Tax Resident Individual)’ and then on ‘Tax type’ select ‘Penalty’.
Requirements for KRA waiver application
The following requirements are needed to apply for a tax
penalty waiver on the KRA iTax portal.
- KRA
PIN and iTax password to enable you to log into the KRA iTax portal
- KRA
waiver letter outlining the reasons why you require the penalties to be
waived
How do I get a KRA penalty waiver?
You may have genuine reasons that would get you cleared from
Kenya Revenue Authority penalties. However, the question that comes in most
people’s minds is, ‘How do I request a KRA waiver?’
You must remember the email address that you had used while
doing your Kenya Revenue Authority PIN registration. This will help you
retrieve your Kenya Revenue Authority PIN much easier. Below is a procedure
that you should follow on while applying for a Kenya Revenue Authority penalty
exemption:
1. Open the official KRA website
2. Enter your Kenya Revenue Authority PIN into the PIN box and click continue
3. Then enter your ‘PIN’s password. Key in the arithmetic sum of the security
stamp and log in
4. Then click on the menu labeled Debts and Enforcement
5. Then click on Apply for Waiver for Penalties and Interests
6. Choose Applicant Type as Taxpayer, which is the KRA waiver application
letter or in other words KRA waiver application form or simpler term the KRA
waiver form.
7. Then click on Tax Obligation, e.g. Income Tax Resident Individual or VAT.
This is an example of a KRA waiver letter, just in case you were worried about
where you would get a KRA waiver application letter sample or template.
8. Select tax type from the options given: ”Penalty”, ”Interest” or both.
9. Finally, choose each year that a penalty exists and enter the value you wish
to request for exemption.
10. Then click submit to upload the document for a waiver application.
Follow through the whole procedure and ensure that you key
in all the essential required details, being keen on each gap that you need to
fill into.
How to write a KRA waiver letter
KRA waiver letter is a document/letter address to KRA
stating the reasons why you need the penalties imposed on you for the late
filing of returns to be removed or simple terms waived. KRA waiver processing
is a structured process that needs to be validated by an officer before the
waiver is approved or rejected. Besides, it is not guaranteed. It can be
rejected. The processing of the waiver takes 90 days. There is no specific
format for writing the waiver letter. You just need to write a compelling
reason(s) why the penalty occurred.
Further, in your letter, you also need to justify why you
are requesting a waiver. The waiver letter is normally addressed to the station
manager, where your waiver application will be processed. The KRA station is
written on the PIN certificate. You can also follow up with your tax station on
the progress of the application. Kindly note that your reasons for not filing
the returns on time are what will determine whether the KRA waiver application
will be approved or not.
The Dangers of not Applying for Tax Exemption
It is now clear to you as to why you need to apply for the
tax exemption. Failure to do so will only mount to huge amounts of money that
you will owe the government. As long as you applied for the Kenya Revenue
Authority PIN, it is your responsibility to ensure that you file your returns
annually before the tax authorities given the deadline. This is regardless of
whether you file nil returns. Penalties are charged on the total amount of tax
due.
Initially, before the digitization of the Kenya Revenue
Authority system, your only chance for applying for an exemption meant that you
had to go queue up. The disadvantage of going to the KRA offices to apply for
an exemption was that your luck depended on how well you convinced the KRA
official. It was not a promising procedure, but it was the only way. However,
things have changed, and with digitization, the process can be done at the
comfort of your home or cyber.
The reason why most people do not how to get exemptions is
that a large number is ignorant of the information available. This mostly is
seen in young citizens, especially those between the 20s and 30s. To some, it
is easier and faster to apply for a Kenya Revenue Authority PIN, but it seems
like a hustle to file returns, which results in penalties. Learning how to
apply for the KRA waiver will help you avoid heavy future penalties. Log into
your iTax personal account and follow the above procedures of applying for tax
exemption. This way, you do not have to worry about living in government debts
or having KRA officials looking for you.