The tax amnesty aims to encourage voluntary compliance by enabling taxpayers to regularise outstanding principal tax liabilities while obtaining relief from the related penalties, interest and fines.
Implementation of the tax amnesty is fully automated through the iTax system. Eligible taxpayers are not required to submit an application for amnesty.
2.0 Purpose
These Guidelines are intended to help taxpayers understand:
- who qualifies for tax amnesty;
- taxes covered by the amnesty;
- how to obtain the amnesty;
- how to apply for an automatic payment plan;
- how to generate Payment Registration Numbers (PRNs); and
- the treatment of disputed liabilities and legacy system debts.
3.0 Legal Framework
These Guidelines are issued pursuant to Section 37E of the Tax Procedures Act, CAP 469B and the Finance Act, 2026.
The tax amnesty shall commence on 1 July 2026 and expire on 31 December 2026.
To benefit from the amnesty, all qualifying principal taxes must be fully paid on or before 31 December 2026.
You qualify for tax amnesty if you fall under either of the following categories:
No Outstanding Principal Tax
You qualify automatically if you have no outstanding principal tax for tax periods up to 31 December 2025 but only have outstanding penalties, interest or fines relating to those periods.
Outstanding Principal Tax
You qualify if you have outstanding principal tax relating to tax periods up to 31 December 2025 and you fully pay the outstanding principal tax on or before 31 December 2026.
Once payment is made, the system will automatically remit the corresponding penalties, interest and fines.
Returns Filed During the Amnesty Period
Where you file outstanding returns relating to periods up to 31 December 2025 during the amnesty period:
- Nil returns will automatically qualify for amnesty.
- Where principal tax becomes payable, you will qualify once the principal tax is fully paid by 31 December 2026.
Disputed Tax Liabilities
You may also qualify if your liability is under Objection, Alternative Dispute Resolution (ADR), Tax Appeals Tribunal, Court or any other dispute resolution mechanism provided that the dispute is concluded within the amnesty period and the agreed principal tax is fully paid by 31 December 2026.
6.0 Taxes Covered by the Amnesty
The amnesty applies to taxes administered under the Tax Procedures Act for tax periods up to 31 December 2025.
The amnesty covers penalties, interest and fines.
The amnesty is granted separately for each tax obligation and tax period.
For taxpayers with a December 2025 year-end, any penalties and interest relating to principal tax for that year qualify for amnesty, provided the principal tax is paid within the amnesty period.
Similarly, penalties and interest relating to December 2025 monthly tax obligations qualify for amnesty.
7.0 Taxes Not Covered
The following do not qualify:
- Principal tax;
- penalties, interest and fines relating to tax periods from 1 January 2026 onwards;
- Customs duties administered under the East African Community Customs Management Act;
- Agency revenues.
The tax amnesty is fully automated.
You are not required to submit a separate application.
The system determines eligibility automatically and grants amnesty immediately once the qualifying conditions are met.
Amnesty will not apply for interest, penalties and fines that were already paid before the re-introduction of the amnesty.
Automatic Payment Plan
If you are unable to pay the qualifying principal tax in one instalment, you may apply for an Automatic Payment Plan through iTax.
Other Important Guidance
To benefit from the tax amnesty, you should:
Once the qualifying conditions have been met:
UNCATEGORISED 01/09/2026
