KRA Waiver Request Letter Template for Tax Penalty and interests
When a taxpayer; either a business or an individual fails to file their KRA Tax returns on time, they are penalized. The Penalties are debited in the taxpayer’s KRA account and they can not get a Tax Compliance certificate until they are paid. A taxpayer is required to write a letter to the commissioner requesting a waiver on the penalties for consideration when they need to apply for a tax compliance certificate. You can download this Draft letter and edit it .
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KRA TAX PENALTY WAIVER APPLICATION GUIDE
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.
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How to Apply for a Waiver on your KRA Tax Penalties
The Kenya Revenue Authority invokes Sh2000 or five percent of the tax due as a penalty for late filing. Individual income tax should be submitted by June 30 of the following year. This article will take you through steps on how to apply for a KRA waiver of the penalties on your iTax account.
To check if you have pending penalties or how much your penalties are, log into your iTax account, go to debt and enforcement and click on request for Waiver of Penalties and Interests; under details of waiver, click on tax ‘Income Tax Resident Individual’ and then select penalty as the tax type.
Requirements
To apply for your waiver, you will need your KRA Pin, your iTax password and a KRA waiver letter. There is no specific format for writing the waiver letter. Simply write a formal letter explaining your reasons for not filing your income tax on time. If you have supporting documents, you can attach them to the letter and address it to the station manager.
Read: How To File Your 2020 KRA Tax Returns
How to apply:
- Go to the KRA online portal on https://itax.kra.go.ke/KRA-Portal/
- Enter your KRA PIN and iTax password to log you in. If you have forgotten the password, click on “forgot password” and follow the prompts to reset your password.
- You can then log in to the KRA web portal
- Once you are on the home page, click on “debt and enforcements” on the top bar menu.
- Click on the displayed drop down menu prompting you to “Request for Waiver of Penalties and Interests.
- The waiver form will be displayed as below
Read also: How To Pay Your Taxes On KRA’s New M-Service App
- The applicant information will be populated automatically, so all you need to do is upload the letter and fill in the details of the waiver.
- Once you select the tax type, the KRA penalties will also auto-populate on the form.
- Confirm that you have uploaded your waiver letter and then click “submit”
- After submitting your waiver application, you will need to download the acknowledgement receipt from KRA.
- Click on the Download link to download the KRA Waiver receipt. This is the confirmation that you have applied for KRA Waiver on Penalties in your iTax account. You can use the Waiver receipt to track the status of your KRA Waiver Application.
That is how to apply for a KRA Waiver. It’s quite simple. Note that the KRA Waiver process is structured and your application will be reviewed before validation. A KRA officer will either approve or reject the waiver request depending on the reasons submitted. The process takes 90 days.
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How to Write KRA Waiver Letters
- Tax Services
- November 21, 2017 July 4, 2024
How to Write KRA Waiver Letters
How to Write KRA Waiver Letters: Instead of applying for a KRA waiver using iTax, one may opt to write a KRA waiver letter. The writing process is quite straightforward, given that there is no specific format that one has to follow. All one needs to do is have valid reasons why the penalties occurred and why they are requesting a waiver. These reasons must be realistic and practical. Sometimes people tend to be dramatic, which can make them miss out on the waivers.
Do you need help with any of the concepts discussed above? If so, then contact us at Dennykins Associates . We are one message away from helping you put an end to your taxation nightmares.
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APPLICATION FOR REMOVAL OF TAX OBLIGATION(S) PART A ISO 9001:2015 CERTIFIED This part is for completion by the registered taxpayer applying for removal of tax obligation(s). Note: Incomplete applications shall not be processed.
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. ... A letter is sent to the taxpayer's registered postal address as per the taxpayer ...
What is KRA Waiver Letter? [ KRA Waiver Application Letter ] Basically, a KRA Waiver Letter is a document / letter address to KRA stating the reasons why you need the penalties imposed on you for late filing of returns to be removed or simple terms waived. Please take note that KRA Waiver processing is a structured process which needs to be validated by an officer before the waiver is approved ...
When a taxpayer; either a business or an individual fails to file their KRA Tax returns on time, they are penalized. The Penalties are debited in the taxpayer's KRA account and they can not get a Tax Compliance certificate until they are paid. A taxpayer is required to write a letter to the commissioner requesting a waiver on the penalties for consideration when they need to apply for a tax ...
the waiver application. 4. What evidence should be attached to a waiver application? The supporting evidence varies on case to case basis as per mitigating grounds presented in the waiver application for example if a taxpayer was misled by a tax advisor, we will require evidence of the wrong advise from the tax agent. 5. How do you apply for ...
RE: APPLICATION FOR WAIVER ON PENALTY FOR THE YEAR "2017" ON PIN NUMBER A000000000B I am hereby writing this letter to request for waiver for my KRA PIN number A000000000B under the Income Tax Resident Individual obligation. I was unable to file my returns for the year "2017" as I was still in University pursuing my studies.
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.
Step 7: Fill in Application Form for Waiver and Upload KRA Waiver Letter. In this step, you will need to upload the KRA Waiver Letter and add the details of waiver i.e liability details. Take note that the Applicant Information part is auto-populated so you main focus here will be to upload the KRA Waiver Letter and the Fill the Details of Waiver.
You can use the Waiver receipt to track the status of your KRA Waiver Application. That is how to apply for a KRA Waiver. It's quite simple. Note that the KRA Waiver process is structured and your application will be reviewed before validation. A KRA officer will either approve or reject the waiver request depending on the reasons submitted.
You can also attach evidence that supports your waiver request. After writing your waiver letter, you need to address it to your station manager. Usually, the KRA station is printed on the pinned certificate. Therefore, when you are writing this letter, address it to your specified station manager. The waiver application can only be approved at ...