The Kenya Revenue Authority(KRA) has announced a sensitization exercise which is meant to create awareness on monthly rental income at Nyayo estate in Embakasi.
The tax collector announced this through a statement addressed to the Association of Nyayo Embakasi Property Owners.
Further, according to the statement, the exercise will be conducted on 11th of November from 9:00 am to 11:00 am.
“This is to confirm that KRA will conduct a sensitization exercise to create awareness on the Monthly Rental Income at Nyayo Estate Embakasi- Malaika Park Gate D on 11.11.2023 9.00am-11.00 am and thereafter undertake data collection exercise on Rental income properties,” the statement read in part.
Notably, the revenue authority clarified that the awareness training exercise would be compulsory, citing that the attendance at the training would be in compliance with the Tax Procedures Act.
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“Kindly take note that it is mandatory to comply with the requirements of the Public Notice and KRA legal statutes on provision of records to KRA as per section 24 & section 59 of the Tax Procedures Act and we look forward to a smooth operation,” the statement continued.
What is Rental Income Tax
According to the Kenya Revenue Authority, rental income tax is a tax on gross residential rental income ranging between Kshs.288,000 and 15,000,000 per annum.
Additionally, the tax is 10% on gross rent payable monthly on rent received.
Notably, KRA specifies where the property has both residential and commercial tenants, and where the gross annual rental income is Kshs. 288,000 or less than Kshs.15 million, all rental income is combined in the annual Income Tax return.
However, in instances where the gross annual rental income is from the commercial tenants or combined for both residential & commercial and is more than Kshs.15 million, this part of the income is accounted for as the commercial rental income and taxed at either individual graduated scale or corporate rate of 30%.
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In this case therefore, withholding Tax on the Rental Income will also apply.
Also, due to the complicated nature of filing taxes in the KRTA system, the revenue authority has been working on ensuring that taxpayers have the right knowledge on the same.
Therefore, the tax collector has been organizing various trainings countrywide and through the KRA YouTube channel.