After the President announced the new VAT taxes, most of the basic commodities have influxed in prices including fuel and food which is a basic need to survive. KRA has been on the fore front in implementing the new law especially on land owners.
Kenya Revenue Authority is engaging landlords across the country in efforts to ensure they understand and comply with the monthly rental income tax requirements.
KRA,on a roll to widen its tax base, is offering clarity to individual property owners on the tax charged at 10 per cent for gross annual incomes of between Sh144, 000 and Sh10 million (Sh12,000 to Sh833, 000 per month).
Rental income tax came into force on June 1, 2016, but has registered low collection with most landlords not declaring rental income.
Speaking as officers from the Kisumu tax office – covering Kisumu, Siaya and Homa Bay counties – met the landlords, KRA’s western Kenya chief manager of Operations John Orioro attributed low collections to poor book keeping, complexity in the previous tax system, general lack of awareness and informal operation by the industry players.
“We have realised there is a gap in compliance in the real estate sector, especially on the rental income where we have not made inroads into the taxpaying population. And so we have seen the need to partner with the investors and educate them on what they should do.
Monthly rental income is for example, a fairly new way of paying rent and such sessions offer us the opportunity to also learn from them the challenges they face with the new regime,” said Orioro.
[BUSINESS] KRA goes for small landlords in hunt for revenue: KRA is engaging landlords across the country in efforts to ensure they understand and comply with the monthly rental income tax requirements https://t.co/UfHKtXGYRj
— Breaking News (@News_Kenya) October 24, 2018