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Are you a landlord and worried about the rental income tax introduced by Kenya Revenue Authority? Well, worry no more. KRA has introduced a rental income amnesty to Landlord but for a limited time period. You must hurry!
KRA has set the deadline for the amnesty to be on 30th June 2016. That means all Landlords need to declare and make their Rental Income returns for transactions done between 1st July 2014 – 30th June 2015 before the June 2016 deadline in order to be eligible for the Rental Amnesty.
Eligibility
So how do I check if I am eligible for the Tax Amnesty, you may ask? Well the Rental Amnesty will be granted to both individuals and companies who take advantage of this opportunity that will see them have all past penalties, principal taxes and interest being waived from 2013 and prior, 2014 and 2015.
That’s not all, the Rental Amnesty will also give landlords priviledges to be exempted for any tax compliance checks or audits for period of 2013 and prior, 2014 and 2015, that’s if you disclose all your undeclared rental income to KRA.
If the landlord is deceased or if they are Kenyans in diaspora, then they will be eligible for the Rental Amnesty.
So who is not eligible for this Rental Amnesty?
Foreign landlords won’t be eligible for this Tax Rental Amnesty since they are subjected to a withholding tax at 30%. Any Kenyan landloard in Diaspora or in the country whose properties are being managed by a company on their behalf won’t be eligible as well. Since there income would have already been declared on their behalf by the companies managing their properties.
How to make your rental income tax returns
KRA has provided a detailed instructions on how you can make your rental income tax returns and they have also provided contact details for staff in-charge of the Tax Amnesty on Rental Income.
- Step by Step Guide for Application of Tax Amnesty on Rental Income
Once you have made the returns online, you will need to make payment for the 2014 and 2015 rental income tax return. KRA has made it easier for landlord to make payment using Mpesa;
Pay Using Mpesa
- Go to Mpesa, Select Paybill
- Enter KRA Pay Bill Number 572572
- Enter Account Number – this will be Payment Registration Number quoted at the top right corner of the generated Payment Slip.
Please note that this Tax Amnesty on Rental income is a ‘one-off’ opportunity so all landlords should take advantage of it to eliminate the tax burden that they might incur after the Amnesty is over.
If you want to meet any KRA staff in regards to the Rental Amnesty, then you can visit them on Ground Floor, Forodha House, Nairobi.
Watch KRA Rental Tax Amnesty Campaign
Photo & Video Courtesy of Kenya Revenue Authority (KRA)
