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KRA calculation for rental income per nation
kimugaman
#1 Posted : Tuesday, February 09, 2016 6:50:26 AM
Rank: New-farer


Joined: 5/15/2015
Posts: 26
The article says:

Kra gives landlords march deadline

"...For instance, a tenant with 10 housing units at a monthly rent of Sh10,000 is expected to pay Sh12,000 in taxes a year but the amount could be lower if some units are not occupied..."

Is this correct? Do they mean 120,000 in taxes a year? (12,000 a month)?

10 units X 10,000 per month = 100,000
100,000 * 12 months = 1.2 million
Annual tax due (10% * 1.2 million) = 120,000 (tax rate is assumed to be 10%)
sparkly
#2 Posted : Tuesday, February 09, 2016 7:08:07 AM
Rank: Elder


Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
kimugaman wrote:
The article says:

Kra gives landlords march deadline

"...For instance, a tenant with 10 housing units at a monthly rent of Sh10,000 is expected to pay Sh12,000 in taxes a year but the amount could be lower if some units are not occupied..."

Is this correct? Do they mean 120,000 in taxes a year? (12,000 a month)?

10 units X 10,000 per month = 100,000
100,000 * 12 months = 1.2 million
Annual tax due (10% * 1.2 million) = 120,000 (tax rate is assumed to be 10%)


per month
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enyands
#3 Posted : Tuesday, February 09, 2016 9:42:24 AM
Rank: Elder


Joined: 12/25/2014
Posts: 2,300
Location: kenya
kimugaman wrote:
The article says:

Kra gives landlords march deadline

"...For instance, a tenant with 10 housing units at a monthly rent of Sh10,000 is expected to pay Sh12,000 in taxes a year but the amount could be lower if some units are not occupied..."

Is this correct? Do they mean 120,000 in taxes a year? (12,000 a month)?

10 units X 10,000 per month = 100,000
100,000 * 12 months = 1.2 million
Annual tax due (10% * 1.2 million) = 120,000 (tax rate is assumed to be 10%)



No ,10 units at 10,000 a unit gives you a total of 10x10,000 =100,000 for the whole 10 units per month

Now tax is (12/100)X100,000= 12,000 tax per month for all the 10 units

Every year it will be 12×12,000 =144,000 against a total revenue of 1,200,000
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