The Kenya Revenue Authority (KRA) has set the clock ticking for commercial vehicle owners, reminding them to pay their advance tax for the 2025 income year by January 20, 2025.

Non-compliance with this annual obligation could result in hefty penalties, as stipulated under Section 12A of the Income Tax Act and Paragraph 8 of the Third Schedule.

According to KRA, the advance tax rates are determined by the type of vehicle.

Vans, pick-ups, trucks, and lorries are taxed at Sh2,500 per ton of load capacity, with a minimum annual payment of Sh5,000.

For saloons, station wagons, mini-buses, and coaches, the tax is calculated at Sh100 per passenger capacity each month, subject to the same minimum threshold of Sh5,000.

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The authority further reminded vehicle owners that advance tax must be cleared before any transfer of ownership is processed.

This ensures that all tax liabilities are cleared before the vehicle is registered under a new owner.

KRA urged taxpayers to adhere to the regulations, cautioning that missing the deadline could attract severe financial penalties.

Vehicle owners have been called upon to act swiftly, avoiding last-minute rushes that might lead to complications.

With the deadline fast approaching, KRA’s reminder serves as a critical warning to vehicle owners to stay compliant and avoid unnecessary legal and financial troubles.