What is instalment tax and when is it payable?

Payment of Income tax due for the year within the accounting period in full or instalments. Four equal instalments are made during the year of income based on 110% of last years tax liability.

Instalment tax is not payable where:

    • emoluments have been subjected to PAYE deductions
    • tax due for any corporate taxpayer is not more than Sh.40,000 p.a.
    • Instalment tax is payable on the following dates:
    • 20th of the 4th month
    • 20th day of the 6th month
    • 20th day of the 9th month
    • 20th day of the 12th month

Agricultural income:

    • 20th day of the 9th month
    • 20th day of the 12th month.

Balance of tax due is payable at end of the 4th month of the year following the accounting date of the year
of income.

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