Instalment Tax Filing

Price: KES 7,000

Instalment tax is an estimated income tax paid to KRA periodically, in anticipation of the tax payable for a year of income. It is not payable by persons who are subject to Turnover Tax (TOT) and individuals whose tax liability for that year of income is an amount not exceeding Kshs. 40,000.

Any tax overpayments or underpayments in relation to the tax payable as a result of the installment taxes are to be refunded or paid respectively by the end of the 4th month of the next accounting period.

The Instalment Tax Schedules are as follows:

1. All other Corporations and Individuals with a tax liability of over KShs. 40,000 in a Year

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 taxpayers.

2. Agricultural Companies

Taxpayers in the Agricultural Sector pay in two instalments of 75% in the 9th month and 25% in the 12th month. Any balance of tax is due by the end of the 4th month of the following year after the end of the accounting period.

The penalty of underpaying Installment tax is 20% of the difference between the amount of instalment tax payable in respect of a year of income and the instalment tax actually paid.

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