NAIROBI, Kenya, Jan 15 – Kenya Revenue Authority (KRA) has reminded commercial vehicle owners to pay their advance tax for the 2025 income year by January 20, 2025.
Advance tax rates vary depending on the type of vehicle.
Vans, pick-ups, trucks, prime movers, trailers, and lorries are taxed at Sh2,500 per ton of load capacity, with a minimum annual payment of Sh5,000. Saloons, station wagons, mini-buses, buses, and coaches are charged Sh100 per passenger capacity per month, also subject to a minimum of Sh5,000 annually.
KRA noted that advance tax must also be paid before the transfer of ownership in cases where a commercial vehicle changes hands. This ensures the new owner is registered only after the tax has been cleared.
Failure to comply with the January 20 deadline may result in significant penalties. This annual obligation is a legal requirement under Section 12A of the Income Tax Act and Paragraph 8 of the Third Schedule.
The authority has called on taxpayers to comply with the regulations to avoid penalties and remain on the right side of the law.
