Brimus Consultancy

25/03/2023

23/12/2022

17/11/2022

You can now find us on your favourite social media sites!

Follow us for financial content -

Book a consultation - www.brimusassociates.co.ke

10/10/2022

The entire team at Brimus Consultancy joins Kenyans in celebration of the country’s rich cultural diversity and heritage.

Utamaduni Wetu, Kenya Yetu!

10/10/2022

Happy Customer Service Week!
Thank you for letting us serve you.

It is our aim to provide client-based financial solutions that guarantee value for money and quality, observing the utmost level of integrity.

22/02/2021

INSTALLMENT TAX

Definition:
Installment tax is estimated income tax paid to KRA periodically, in anticipation of the tax payable for a year of income. Installment tax is a form of advance tax administered under the Income Tax Act Cap 470, laws of Kenya. Installment Tax is paid in advance at four equal installments. It is paid before the year of income is over and before the accounts of the business are prepared to establish the actual tax payable.
Calculation of Installment tax:
This may be done in either of the two ways:
Prior year basis – Prior year tax payments are multiplied by one hundred and ten percent.
Current Year basis - In this method, especially for new business or those who were in losses and turned to profitability, installment tax is determined by estimating the current year profit and tax payable thereon

Date Due:
The installments 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 installments of 75% in the 9th month and 25% in the 12th month.
Penalty:
• Penalty for the late payment of Income Tax shall apply.
• The penalty of underpaying Installment tax is 20% of the difference between the amount of installment tax payable in respect of a year of income and the instalment tax actually paid

Should you need any further clarification, please contact Tel: 0716-414 951, 0723-739 375 or Email [email protected] or [email protected] or [email protected]