Kenya - Apply for a Advance Tax

ProcedureEdit

Apply On-line

Step 1: Get started by logging in to Kenya Revenue Authority Portal

Go to KRA online tax portal : KRA online tax portal and log in.
Enter KRA PIN then click continue.
Enter password and security stamp to login to your KRA account.

Step 2: Payment registration

Click on the payment icon and select payment registration

Step 3: Select payment obligation and tax period

Under tax head icon select (income tax)
Under the tax sub head icon select (Advance tax)
Under Payments type icon select ( self-assessment tax)
Select tax period you want to pay (e.g. Jan 2019 to Dec 2019)
Choose the mode of payment (cash /cheque/ RTGS)

Step 4: Download the payment slip and make payment

After making the selections above click submit to download a payment slip
Proceed to make payment using payment slip.

Apply In-Person:

Go to the Office of General Directorate of Taxes at the Kenya Revenue Authority. To make the application.
Bring and present the required documents to the revenue officer. These documents include

i. A copy of certificate of incorporation.

ii. Vehicle log book.

iii. Vehicle Tax Clearance Certificates.

iv. Letter of application for registration Advance Tax,

v. Invoice (importation papers)

vi. Personal Identification Number (PIN),

vii. PSV licence.
You will be given an advance tax application form to fill. The tax revenue officer will assess the application and determine the advance tax payable.
The revenue officer will direct you to the cashier to pay the application fee and Advance tax for registering your public service vehicle.
After payment to the advance tax you will be issued with an advance tax certificate.

Required DocumentsEdit

A copy of certificate of incorporation.
Vehicle log book.
Vehicle Tax Clearance Certificates.
Letter of application for registration Advance Tax.
Invoice (importation papers)
Personal Identification Number (PIN)
PSV licence.

Office Locations & ContactsEdit

Kenya Revenue Authority- Head Office
Times Tower, 19th Floor,
Haile Selassie Avenue
P.O. Box 30742
Nairobi, Kenya.
Tel. 310900, 2813068 , 2813160 , 2812011.
Fax: 253532,240929 ,315987
Email: [email protected]
Website: Kenya Revenue Authority website

KRA Desk - Huduma Center Huduma Center Locations

i - Tax Protal i-Tax Portal

EligibilityEdit

All Kenyan Vehicles for public service and commercial service are entitled to advance tax.

FeesEdit

The current rates (wef 14.06.2001) are:

i. For load carrying vehicles - vans, pick-ups, trucks and Lorries:-

Kenya shillings one thousand five hundred (1500) per ton load capacity per year, or
Kenya shillings two thousand four hundred (2400) per year,

Whichever is the higher.

ii. For passenger carrying vehicles - saloons, station wagons, minibuses, buses and coaches:-

Kenya shillings sixty (60) per passenger capacity per month, or
Kenya shillings two thousand four hundred (2400) per year,

Whichever is the higher.

iii. For drivers Ksh3,600 per year

iv. For conductors Ksh 1,200 per year

ValidityEdit

Valid for 1 year.

Documents to UseEdit

Please attach documents that can be used by people. e.g. links

Sample DocumentsEdit

Please attach sample completed documents that would help other people.

Processing TimeEdit

The processing time is 14 days.

InstructionsEdit

The owners of public service vehicles like Matatus must register for an advance which should be paid in advance before a vehicle is registered or licensed in Kenya.
Mode of payment.
- The Commissioner is empowered to prescribe the conditions and procedures governing the payment of Advance Tax.
- Currently, the tax is paid at the time of obtaining the PSV license (in the case of conductors and drivers) and at the time of booking for inspection (in the case of commercial vehicle).
- Payments are made at all KRA offices where PSV licenses are issued and from designated Domestic Taxes Department offices.
- Where the receiving office is not computerized, a manual receipt is issued and the vehicle owner should give all his particulars
i. Full names,

ii. Personal Identification Number (PIN),

iii. Vehicle registration number

iv. Physical and postal address to facilitate issuance of a computerized receipt.

This should be received by the vehicle owner within a short period.
End-Of-Year procedure for vehicle owners:
- As the name implies, Advance Tax is a personal tax liability paid in advance.
- The vehicle owner should claim a deduction in respect of the amount paid in any year when submitting tax returns (self-assessment returns) for that year.
- The amount so claimed shall be set-off against the years’ tax liability and where there is nil tax liability, an appropriate refund will be made, subject to the satisfaction of the Commissioner that the refund is correctly due.
Public institutions and exempt organizations
- No Advance Tax is payable in respect of commercial vehicles that are registered in the names of Public Institutions (e.g. Public schools, Government Ministries etc.) and organizations that are exempt from tax.
- However, such bodies must produce appropriate evidence of their status to the Commissioner for Authority not to pay the Advance Tax.

Required InformationEdit

Name of Taxpayer
Taxpayer Identification Number
Company PIN
Business Name or Trade Name of Taxpayer
Bank Details
Name of Bank
Bank branch
Account Number
Type of Employment
Total Income Chargeable Income Total Tax Payable
Details of Salary paid and Person relief tax deducted from Employees
Vehicle registration number
Physical and postal address

Need for the DocumentEdit

This is a tax paid in advance before a public service vehicle or commercial vehicle is licensed at the rates applicable.

Information which might helpEdit

Section 12A of the Income Tax Act (Cap 470) was introduced by the Finance Act. 1995, and came into force with effect from 1st January 1996. It provided for the payment of a tax 'to be known as Advance Tax', in respect of commercial vehicles that are licensed to operate on Kenyan roads.

A Commercial Vehicle is a road vehicle which is:-

i. Manufactured for the carriage of goods and so used in connection with a trade or business; or

ii. A motor omnibus as defined in the Traffic Act; or

iii. Used for the carriage of members of the public for hire or reward.

This includes such road vehicles as vans, pick-ups, trucks, Lorries, station wagons, minibuses, buses, and coaches.

This is a tax paid in advance before a public service vehicle or commercial vehicle is licensed at the rates applicable.

The tax rates for advance tax are as follows

i. For vans, pick-ups, trucks, prime movers, trailers and lorries; Kshs. 1,500 per ton of load capacity subject to a minimum of Kshs. 2,400 per year of income.

ii. For saloons, station-wagons, mini-buses, buses and coaches; Kshs. 60 per passenger capacity per month subject to a minimum of Kshs. 2,400 per year of income.

Advance tax is not a final tax. Individuals who have paid any advance tax are required to declare the same in their individual income tax returns submitted yearly and pay any additional tax due.

External LinksEdit

Advance Tax : Advance Tax in Kenya

OthersEdit

Section 12A of the Income Tax Act (Cap 470) was introduced by the Finance Act. 1995, and came into force with effect from 1st January 1996. It provided for the payment of a tax 'to be known as Advance Tax', in respect of commercial vehicles that are licensed to operate on Kenyan roads.
Advance tax means income tax should be paid in advance instead of lump sum payment at year end. It is also known as pay as you earn tax.
These payments have to be made in instalments as per due dates provided by the income tax department.