What is advance Tax?
This is a tax paid inadvance before a public service vehicle or commercial vehicle is licensed at the rates applicable. Advancetax is a Taxapplicable to Matatus and other Public Service Vehicles. It is not a finaltax, but a tax partly paid inadvance before a public service vehicle or a commercial vehicle is registered or licensed.
What are the tax rates for advancetax?
- 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 passenger capacity per month subject to a minimum of Kshs. 2,400 per year of income.
Is advance tax a final tax?
Advancetax is not a finaltax. Individuals who have paid any advancetax are required to declare the same in their individual income tax returns submitted yearly and pay any additional tax due.
Do pensioners have to pay advancetax?Salaried, freelancers and businesses– If your total tax liability is Rs 10,000 or more in a financial year you have to pay advancetax. Advancetax applies to all taxpayers, salaried, freelancers, and businesses. Senior citizens, who are 60 years or older, and do not run a business, are exempt from paying advancetax.