Tax provision and instalment forecast
Estimate the year's tax from expected profit, set the four instalments and their due dates, and track what you have paid.
Paying tax in four instalments avoids a shock at year end, but only if you know how much each should be. This workbook estimates the year's tax from expected profit, compares it with the prior year's tax uplifted by the allowed percentage, takes the lower as the basis, splits it into the instalments with their due dates and tracks payments and what is still due.
Finance managers and owners of companies and self-employed businesses who pay instalment tax, and accountants who plan cash for tax payments.
What is included
- Tax estimate from expected profit
- Comparison with the prior year uplifted
- Four instalments with due dates
- Paid and outstanding tracked
- Rates sheet with the rate and uplift
Advertisement
Screenshots
How to use it
- Check the corporation tax rate and the uplift on the Rates sheet.
- Enter the start of the accounting year, the expected profit and last year's tax.
- Read the basis and the four instalments with their due dates.
- Record each payment in the Paid column and watch the balance.
Templates are tools to help with your own records. They are not tax or legal advice. Check the figures against official sources before filing or paying.
Advertisement
More in this category
-
Taxpdf
Tax audit survival guide
What to do when KRA announces an audit: the types, your rights, the documents to prepare and how to respond.
KES 1,080KES 1,200-10%
View details →
-
Taxpdf
Rental income tax guide for landlords
Monthly rental tax or annual return? How landlords register, file, pay and keep records, with a worked example.
KES 720KES 800-10%
View details →
-
Taxpdf
Withholding tax guide for Kenyan businesses
Who must withhold tax, on which payments, at what rates, and how to remit, issue certificates and keep records.
KES 720KES 800-10%
View details →
What the tax provision and instalment forecast does
Paying tax in four instalments avoids a shock at year end, but only if you know how much each should be. This workbook estimates the year's tax from expected profit, compares it with the prior year's tax uplifted by the allowed percentage, takes the lower as the basis, splits it into the instalments with their due dates and tracks payments and what is still due.
Who it is for
Finance managers and owners of companies and self-employed businesses who pay instalment tax, and accountants who plan cash for tax payments.
How to use the workbook
- Check the corporation tax rate and the uplift on the Rates sheet.
- Enter the start of the accounting year, the expected profit and last year's tax.
- Read the basis and the four instalments with their due dates.
- Record each payment in the Paid column and watch the balance.
- Save a copy under a new name for each month or year, so earlier records stay as they were.
What is inside
- Tax estimate from expected profit
- Comparison with the prior year uplifted
- Four instalments with due dates
- Paid and outstanding tracked
- Rates sheet with the rate and uplift
The workbook has these sheets: Instructions, Forecast, Instalments, Rates. Yellow cells are for you to fill in and grey cells calculate by themselves, so leave the grey cells alone. The example rows show how it works; type over them with your own entries.
Tips for getting it right
- Update the profit estimate every quarter and adjust remaining instalments.
- Pay on or before the 20th of each instalment month.
- Remember late instalments attract penalties and interest.
- Check the rules for your type of taxpayer.
Why keep this record
Most tax trouble comes from late or missing records rather than from the tax itself. When the figures are collected as they happen, preparing a return becomes a matter of copying totals, not of searching for receipts. A workbook that follows the same layout as the return also makes it easier to spot a number that looks wrong before KRA does, and to explain it if asked.
Questions people ask
Do I need to know Excel formulas? No. Type into the yellow cells and the rest is worked out for you. The formulas are visible if you want to see how a figure is reached.
Can I add rows or change the layout? You can add your own columns to the right and your own notes. If you insert rows inside a table, copy the grey formula cells down so the new rows calculate too.
Will it work on my phone or in Google Sheets? Yes for viewing and typing, but dropdown lists and the charts look best in desktop Excel or LibreOffice.
Keeping it safe and up to date
Tax figures change with each Finance Act, so check the Rates sheet against KRA's current guidance before you file. Keep the supporting documents with the workbook, and keep each year's copy for at least five years in case KRA asks for proof.
Read the KRA filing calendar for small businesses for the wider picture. Free calculators that go with it: Instalment tax calculator, Corporation tax calculator. See more tax templates or ask us for a custom one.
The workbook works in Microsoft Excel, LibreOffice and Google Sheets. It is a tool to help you work out and record figures, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.
Related guides, calculators and templates
- Free calculator: Instalment Tax Calculator
- Free calculator: Corporation Tax Calculator
- Guide: How to build a 12-month cash flow forecast for a small business
- Guide: KRA penalties and interest explained: what late filing and payment cost
- Guide: Fixed assets and capital allowances explained for small businesses
- Another template: Corporation tax computation workbook
- Another template: Instalment tax planner
- Another template: Annual income tax estimator
Need something different? Request a custom template, browse all guides or see every Excel template.
Scroll inside the box to read more.