Income tax is categorized as a direct tax  in Kenya.

Income Tax is collected using various methods depending on the sources of income.

• CORPORATION TAX

This is a type of Income Tax that is levied on corporate bodies such as Limited companies, Trusts, and Co-operatives, on income derived on a given year of income.

NB:Companies based outside Kenya but operate within Kenya,also pay corporation tax on income accrued in Kenya only.

•  PAY AS YOU EARN(PAYE ) TAX

PAYE tax  is tax chargeable at source to persons with monthly employment income of Kshs. 24,000 and above.

This is directly deducted by employers from employees salaries depending on the prevailing tax rates and  directly remitted to the KRA on or before 9th of the following month.

• WITHHOLDING TAX(WHT)

• Advance Tax

  This is a tax paid in advance before a public service vehicle or a commercial vehicle goes for the annual inspection.

   

•  Installment Tax

  Installment tax is paid by persons who have tax payable for any year that amounts to Kshs. 40,000 and above.