Installment tax is an estimated income tax paid to KRA in advance and in anticipation of tax payable for the year of income. Installment tax is paid in four installments. A projection of the income tax payable is done at the beginning of the financial year based on prior years’ tax paid or current year’s estimates. Once the annual accounts of the business are finalized and actual income tax payable is established, a balance of tax payment is done.
Installment tax is payable by both individual and non-individual taxpayers whose income tax is not covered by PAYE and it exceeds Kes 40,000 per year. Persons under Turn Over Tax (TOT) are not subject to installment tax. Installment Tax is paid via iTax.
Below is a guideline of the installment tax due dates for taxpayers whose financial year runs from January to December.
| Installment | Due Date |
| 1st Installment-25% of estimated annual income tax payable | 20th of April |
| 2nd Installment-25% of estimated annual income tax payable | 20th of June |
| 3rd Installment-25% of estimated annual income tax payable | 20th of September |
| 4th Installment-25% of estimated annual income tax payable | 20th of December |
| Balance of tax-Actual Income Tax payable less installments paid. | 30th of April after year end |
For enquiries on all tax matters get in touch on 0700 053980 or email info@optima-accounting.co.ke.
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