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Residential Income Tax in Kenya from 2016

Mar 21st, 2016

Effective date of the new simplified tax regime (i.e. Residential Rental Income Tax) The new rate of 10% tax on gross rent takes effect on 1 st January 2016 and will apply to rental income received from calendar month January 2016. E.g someone with a house going for rent of Kshs 50,000 in Nairobi will pay 5000 a month.

Eligible persons shall be required to file and make correct declaration through a simplified tax return via iTax System and pay tax due on or before the 20th day of month following the rent receipt. The first return for January 2016 shall be expected to be filed by 20th February 2016. Any tax not paid by the monthly due date will attract penalties and interest as specified in the Income Tax Act.

8 Things To Consider When Renting A House/Apartment In Kenya

Mar 04th, 2016

Some things have to be seriously considered when renting a house or an apartment in Kenya - Nairobi or any other major town. (Real Estate transactions in Kenya need not be a nightmare) . A new house defines a new phase in a person’s life. It is exciting,yet at the same time quite a hustle in achieving the ideal dream house. One cannot just hop into the first “perfect” house in Nairobi or Mombasa you spot for rent near the road just because you need easier access to your work place. Although accessibility is a factor to consider when locating a house to move into, it cannot be the only definitive factor.

7 Things To Consider Before Buying Property In Kenya

Mar 04th, 2016

Kenyans are too familiar with stories of people who have bought “air” in the name of land or a house. Some, especially urban dwellers, have rented “air” instead of a house. People are being conned of their hard-earned money as they try to buy their dream homes or a piece of land where they can put up a dream house — or even when looking for a house to rent. We sought to unravel some key nuggets to consider when buying property in Nairobi or Kenya at large:-

Taxation On Residential Income-(Tax Amnesty Opportunity!)

Mar 04th, 2016

The budget statement for fiscal year 2015/2016 read on 11th June 2015 by the Cabinet Secretary for The National Treasury highlighted a raft of tax measures aimed at collecting tax revenue from the landlords. The highlights were confirmed on release of the 2015 Finance Bill in which proposals to amend the Income Tax Act have been made to realize the revenue collection target from the landlords