wazua Mon, May 4, 2026
Welcome Guest Search | Active Topics | Log In

19 Pages<1234>»
Impact of 30% rental income tax on housing development in Kenya
Options
Previous Topic · Next Topic
MaichBlack
#11 Posted : Thursday, June 14, 2012 3:27:16 PM
Rank: Elder

Joined: 7/22/2009
Posts: 7,912
If you pay 30k rent but you agree with the landlord that for tax purposes, the rent will be quoted at 10k or 8k [but you still pay him/her 30k] then what next? Will the government/KRA set minimum rents depending on the house?

This thing is just too easy to beat [for residential]. If a landlord gives you an option: Say you pay 30k and cough up an extra 9k in taxes or say you pay 8k and he coughs up the 2.4k taxes or you share it, which option will you take?

By the way, taxes will always be passed to the consumer!!! For those of you thinking that this burden is for the landlord, you had better think again! If you are a tenant, prepare to carry the burden or move to "vitongoji duni"! Habari ndiyo hiyo. These money is coming straight out of YOUR pocket!!!
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
Back to top
  |
MaichBlack
#12 Posted : Thursday, June 14, 2012 3:29:34 PM
Rank: Elder

Joined: 7/22/2009
Posts: 7,912
Ali Baba wrote:
Increasing rent is not a solution as such.KRA will still tax the increase,hence the landlord's taxable income will go up.Now,you whiners pay tax!! That's the only way out.personally,I pay more than sh 500,000 a year in taxes.Let's share this burden together!!!!

And you are about to start paying more if you are a tenant!!!
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
Back to top
  |
Ali Baba
#13 Posted : Thursday, June 14, 2012 3:53:03 PM
Rank: Member

Joined: 8/29/2008
Posts: 573
MAICHBLACK: I think you are very ignorant of the Income Tax act. I said increasing rent to cover taxes increases taxable incomes.therefore the cycle continues.I would not agree to pay 30k rent and say rent is 10k to cheat the taxman.Schemes for cheating taxman,I would not be involved.If I pay 30k rent....let it remain 30k,what the landlord does with KRA is not for me to be involved.besides its illegal to help another taxpayer evade taxes.I think you are a tax evader.Mr Njiraini,push on....let us all share the tax burden.Flush them out from every where.ITS MENE MENE TEKEL for tax evaders!!
Back to top
  |
Ali Baba
#14 Posted : Thursday, June 14, 2012 3:59:32 PM
Rank: Member

Joined: 8/29/2008
Posts: 573
He he he!! Ati,a tenant like me be involved in landlord's tax evasion schemes??Are you trying to send me to Kamiti maximum because of a few shillings/month??That is the joke of this month.Someone evades taxes by himself/herself!!!
Back to top
  |
MaichBlack
#15 Posted : Thursday, June 14, 2012 4:10:51 PM
Rank: Elder

Joined: 7/22/2009
Posts: 7,912
Ali Baba wrote:
MAICHBLACK: I think you are very ignorant of the Income Tax act. I said increasing rent to cover taxes increases taxable incomes.therefore the cycle continues.I would not agree to pay 30k rent and say rent is 10k to cheat the taxman.Schemes for cheating taxman,I would not be involved.If I pay 30k rent....let it remain 30k,what the landlord does with KRA is not for me to be involved.besides its illegal to help another taxpayer evade taxes.I think you are a tax evader.Mr Njiraini,push on....let us all share the tax burden.Flush them out from every where.ITS MENE MENE TEKEL for tax evaders!!

Vitriol masks valid points and makes even otherwise intelligent individuals look as stupid as hell.
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
Back to top
  |
nakujua
#16 Posted : Thursday, June 14, 2012 4:17:43 PM
Rank: Elder

Joined: 12/17/2009
Posts: 3,583
Location: Kenya
Digitali wrote:
Marty wrote:
kyt wrote:
lets wait wether the finance guy will touch it, fingers crossed


The easiest and the most practical answer to landlords is to increase rent.


Rental income has always been taxable under the income tax act however many people with rental income have not been declaring this income to KRA. on the other hand KRA has not been aggressively pursuing people with rental income probably because they lacked a mechanism of identifying and following the defaulters! The good news to KRA and bad news to defaulters is that technology has come to the aid of KRA i.e use of GIS(Geographic information system) in zeroing in on all the landlords.

The truth is that this will certainly have a negative impact on the real estate industry and bearing in mind most of the people are tenants, the real property investors will certainly have to look at alternative investments with higher returns if passing on of the tax liability to the tenants is not possible!


even if they zero in using GIS technology, how will they know if the units are occupied - well they could go ahead and use some form of infrared technology to detect body movement in the individual units.

is it practical ? I don't think so.
Back to top
  |
Ali Baba
#17 Posted : Thursday, June 14, 2012 4:19:29 PM
Rank: Member

Joined: 8/29/2008
Posts: 573
Maichblack:then I apologize for the vitriol.Si ni sawa sasa??
Back to top
  |
nakujua
#18 Posted : Thursday, June 14, 2012 4:27:52 PM
Rank: Elder

Joined: 12/17/2009
Posts: 3,583
Location: Kenya
Ali Baba wrote:
MAICHBLACK: I think you are very ignorant of the Income Tax act. I said increasing rent to cover taxes increases taxable incomes.therefore the cycle continues.I would not agree to pay 30k rent and say rent is 10k to cheat the taxman.Schemes for cheating taxman,I would not be involved.If I pay 30k rent....let it remain 30k,what the landlord does with KRA is not for me to be involved.besides its illegal to help another taxpayer evade taxes.I think you are a tax evader.Mr Njiraini,push on....let us all share the tax burden.Flush them out from every where.ITS MENE MENE TEKEL for tax evaders!!


hasira ya nini, there are those who evade tax and those who comply.
Back to top
  |
Ali Baba
#19 Posted : Thursday, June 14, 2012 4:28:27 PM
Rank: Member

Joined: 8/29/2008
Posts: 573
NAKUJUA: it will help a lot.It may not prove but it will reduce evasion.Plus they have officers in the field who will be walking around verifying such.Also,if you have built a house and its not occupied,it shows you have a source of income which maybe is not taxed and this will help reduce evasion even from other sources.Let's say a mitumba trader or say jua kali people,they evade taxes(most of them) and invest in plots and houses.If WE(taxpayers and KRA)find out that you have a house,then it will not help compliance but zero in on mitumba income.Sounding good??I like what I'm hearing from Githae.All Landlords must be brought to "Times Tower umbrella".Good.Very good.I love you Githae and Njiraini.God bless KRA.
Back to top
  |
Ali Baba
#20 Posted : Thursday, June 14, 2012 4:30:25 PM
Rank: Member

Joined: 8/29/2008
Posts: 573
....I meant....it will help NOT ONLY COMPLIANCE,but zero in on other sources....
Back to top
  |
19 Pages<1234>»
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Wazua Investor Theme
Powered by YAF | YAF © 2003-2009, Yet Another Forum.NET
Copyright © 2026 Wazua.co.ke. All Rights Reserved.