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How Government intends to kill the construction industry
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Stealth
#41 Posted : Sunday, June 16, 2013 8:37:22 PM
Rank: Member


Joined: 5/3/2010
Posts: 145
Location: East Africa
MaichBlack wrote:
Ngong wrote:
Suppose the tenant[s] vacate house or worse default on rent,what happens?

A friend of mine was asking me the same question. He was telling me because KRA will be demanding tax on a fixed amount, they had better organize with the tenants to be taking the rent to them, they deduct their tax and send him the balance!
Laughing out loudly Laughing out loudly Laughing out loudly Laughing out loudly Laughing out loudly Laughing out loudly



Kwa nyumba ya nani? Utaniambia kama lease agreement iliandikwa KRA or jina langu au la kampuni.

Utahama au ulipe kupitia mapua.
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VituVingiSana
#42 Posted : Sunday, June 16, 2013 9:11:23 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,126
Location: Nairobi
jaggernaut wrote:
I am in formal employment and I pay 30% tax on my income. So what is wrong with other citizens, including landlords, paying 30% tax on their income? Those in formal employment have borne the country's tax burden alone for so long. Sad that we have been having a system where I pay tax on my meagre income while someone pocketing eg 600k per month from a block of flats in Nairobi pays zero tax on income.
Hallelujah! We pay taxes on corporate profits & a double tax on dividends too!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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MaichBlack
#43 Posted : Sunday, June 16, 2013 9:12:36 PM
Rank: Elder


Joined: 7/22/2009
Posts: 7,460
jaggernaut wrote:
I am in formal employment and I pay 30% tax on my income. So what is wrong with other citizens, including landlords, paying 30% tax on their income? Those in formal employment have borne the country's tax burden alone for so long. Sad that we have been having a system where I pay tax on my meagre income while someone pocketing eg 600k per month from a block of flats in Nairobi pays zero tax on income.

And your burden is about to get bigger!!! Your landlord will pass the tax to you! All companies do! I don't know what makes people think this time it will be different!
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Jamani
#44 Posted : Monday, June 17, 2013 8:15:23 AM
Rank: Elder


Joined: 9/12/2006
Posts: 1,554
The optimist wrote:
Jamani wrote:
Check this out
http://www.revenue.go.ke...ationPack-09-8-12.pdf1.

For resident individuals, the annual tax rates (on total annual income including net rent income) are as follows;
On the first Kshs. 121,968 .......................10%
On the next Kshs. 114,912 ...................... 15%
On the next Kshs. 114,912 .................... 20%
On the next Kshs. 114,912 .....................25%
On all income over Kshs. 466,704.........30%
Note: The above scales are referred to as “graduated”

The link is brokend'oh!

Here it is again http://www.revenue.go.ke...rmationPack-09-8-12.pdf
If it doesn't work go to KRA site and follow the link to real estate information.
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Jamani
#45 Posted : Monday, June 17, 2013 8:23:19 AM
Rank: Elder


Joined: 9/12/2006
Posts: 1,554
a) Income Tax on Rental Income
• Prepare rent schedule for all let property showing; number of property, rent received per property, gross rent received, and all expenses incurred per property.
• Deduct only allowable and supported expenses to arrive at the chargeable rent. Examples of tax computations are provided herein.
• Complete tax return by declaring the taxable rent profit and attach rent schedule in support thereof. When you are filing return online, enter the details of the rent schedule as provided in the sheet available with the online tax return form. The sheet is provided when you click in the space to declare/enter taxable rent profit.
• Submit self-assessment return within six months after the close of the accounting period.

http://www.revenue.go.ke...ormationPack-09-8-12.pdf
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kazee
#46 Posted : Monday, June 17, 2013 8:36:41 AM
Rank: Member


Joined: 9/18/2006
Posts: 131
I have done tax returns for 3 years now on rental apartments.
The tax computation in principle is flawed since unlike in industries it ignores the capital an owner sinks to build his investment.
That said, it is unfortunate to see people shouting how tax is computed as 30% of gross rental income. IT IS NOT!
Once you come up with your gross rental income, deduct ALLOWABLE expenses such as:
Exhauster services
Elec bills for security etc
employee salaries
maintenance costs
Interest expense- This can be huge if you constructed through loans.
Of course KRA expects you to be honest in declaring how much income you got through the year.
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