Corporate tax, instalments, and year-end
Resident companies pay 30% on profits — but KRA wants the money in quarterly instalments, not as one lump sum.
Instalment tax schedule
Pay 25% of estimated annual tax (or 110% of prior year's tax) on the 20th of the 4th, 6th, 9th, and 12th months of your accounting year. For a December year-end: 20 April, 20 June, 20 September, 20 December.
Year-end balance
Final balancing payment is due by the last day of the 4th month after year-end (30 April for December year-ends). Self-Assessment Return (Form IT2C) is due by the last day of the 6th month (30 June).
Allowable deductions
- All eTIMS-supported business expenses
- Depreciation via wear-and-tear allowances (not your book depreciation)
- Donations to approved charities
- Pension contributions on behalf of employees
- Bad debts written off (with evidence)
Underpaying instalments triggers Section 38 penalty: 20% of the shortfall + 1% interest per month. Either pay 110% of last year, or get a real forecast from your accountant — don't guess.
The information in this guide is provided for general guidance only and is subject to change. Fees, timelines, and regulatory requirements in Kenya are updated regularly. Before acting, please confirm details with the relevant authority (KRA, eCitizen, BRS, county government, or other regulator) or speak with a qualified MyBiashara advisor. MyBiashara is not liable for decisions made solely on the basis of this content.
