Do you own a commercial vehicle?
Motor vehicle advance tax is due 20 January or before transfer of ownership of vehicle
Rates for Advance tax
- 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;
- For saloons, station-wagons, mini-buses, buses and coaches; Kshs. 60 per passage capacity per month subject to a minimum of Kshs. 2,400 per year of income.
Is advance tax a final tax?
No advance tax is not a final tax. The owner of a commercial vehicle will be required to file annual return of income for the business and claim tax credit for the advance tax. It is right to assume that a person who owns a commercial is using it for business.
Exempt persons under the first schedule of the income tax are also exempted from this tax.
Ref: Income tax act CAP 470, sec 12 A