How To Register Advance Income Tax Payment on URA Website

The process of registering a payment for advance Income Tax on a person’s commercial vehicle during the financial year is very simple and easy once you follow the instructions below.

Definition of Advance Income tax

Advance Income Tax is the tax paid by a person providing passenger transport services or a freight transport service where the goods vehicle used has a loading capacity of at least 2 tonnes and above.

How Advance Income tax is paid.

To pay advance income tax, please register the payment on the URA web portal by selecting the following:

• Payment Registration
• Advance Income Tax for Motor Vehicle.
• Then fill in the details as required and submit.
• Print out the Payment Registration slip that appears on the submission
• Effect payment using the payment mode you selected (bank, point of sale, mobile money, Visa/Mastercard, etc.).

Please note;
even taxpayers already filing tax returns are expected to pay advance income tax and will be given a credit at the end of their respective tax periods at the filing time.

Calculation of Advance Income tax

The rates for advance are specified in part III of the second schedule of the Income-tax and they are;

• ​Goods vehicles – Fifty thousand shillings per ton per year.
• For Passenger vehicles – Twenty thousand shillings per seat per year.

Example;

1. For a truck with a loading capacity of 7 tonnes, the advance income tax is calculated as follows:

Tonnage X amount paid per ton

7 tonnes X 50,000 = 350.000 shillings per year

2) If an Omnibus carries 14 passengers, the advance income tax is calculated as follows:

Number of seats X amount paid per seat

14 seats X 20,000 = 280.000 shillings per year