Location:Background
The Tax Procedure Code (Amendment) Act 2024, which came into force in July 2024, introduces a significant tax relief measure under section 40E. According to this provision, any interest and penalty outstanding as of 30th June 2023 will be waived, provided the taxpayer pays the principal tax by 31st December 2024. Additionally, if a taxpayer pays part of the outstanding principal tax for the specified period by the deadline, the payment of interest and penalty will be waived on a pro rata basis.
Implications for Taxpayers
This development is a substantial opportunity for taxpayers with outstanding tax obligations resulting from non-filing, non-payment, or URA tax assessments up to 30th June 2023. By settling the principal tax by 31st December 2024, these taxpayers can benefit from the waiver of accrued interest and penalties.
Key Points
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Eligibility
Taxpayers with outstanding tax obligations as of 30th June 2023. -
Deadline
Principal tax must be paid by 31st December 2024. -
Partial Payments
Interest and penalty waivers apply on a pro rata basis for partial payments of the principal tax by the deadline.
Actions Required
Taxpayers should review their records and take necessary steps to pay their outstanding principal tax by the 31st of December 2024 deadline to maximize the benefits of this waiver.
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