Installment Tax in Kenya. Instalment tax is estimated income tax paid to KRA periodically, four times a year to cover the total tax payable for the year of income. Instalment tax is administered under the Income Tax Act Cap 470, laws of Kenya.
The instalments are spread evenly at 25% of the tax due and payable on the 20th day of the 4th, 6th, 9th and 12th months of the year of income for all taxpayers expect those in the Agricultural Sector.
Taxpayers in the Agricultural Sector pay in instalments of 75% in the 9th month and 25% in the 12th month.
Meaning of Instalment Tax in Kenya?
Instalment tax is estimated income taxes paid to KRA periodically, to cover the total tax payable for the year of income. Installment tax is administered under the Income Tax Act Cap 470, laws of Kenya.
Who is eligible for InstalmentTax?
If the annual tax liability is projected to exceed Kshs. 40,000, then you should pay your tax in installments.
When do I project the tax liability for the year?
Projection is normally done at the beginning of the financial year. While projecting the annual tax liability, the expected withholding tax for the year needs to be netted off to arrive at the net estimated tax liability.
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