Kenya Revenue Authority now target rental income tax

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Property developers were recently asked by the Kenya Revenue Authority to hand in information on customers who have purchased houses countrywide.

They are targeting property owners who are renting out their homes and are not paying the required taxes.

On behalf of Kenya Revenue Authority commissioner for domestic taxes,Josphine Mugure said in a letter dated June 28 that the information shall be used strictly for tax compliance purposes.The letter was specificly stated to Five Star Gardens Syokimau saying the information should be provided within seven days.

She further stated that the company should provide the unit number,owners name,owners ID,owners PIN,occupier,rent paid,the date at which rent was paid first and the last day saying that it should be provided in soft copy on an excel worksheet.

We look  forward for your favourable response,” Mugure said.

The Authority therefore started following up on those  homeowners escaping tax after the one-year pardon to declare the expiry of rental income on June 30.

The taxperson said it is applying “a block approach” which is backed by the Kenya Power data and water companies to crack down non-compliant landlords on rental property.

The pardon was part of the Authority’s motivation to capture evading landlords into the tax bracket in a bid to meet the ambitious tax targets set by the National Treasury.

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