New Tax Amnesty for LandLords

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The real estate in Mombasa has grown over the years, land owners have opted of constructing income generating houses instead of self residential. A few areas in Mombasa has seen some emerging high-rise rentals, this includes Kizingo, Tudor and Nyali. In Nyali, which has witnessed an explosion, a sudden rush by property developers to put up apartments targeting the working middle class. More and more people are moving out of the congested CBD area to the quieter suburbs, which has prompted higher demand for apartment buildings.

 

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New High-Rise Construction

Over the years rental income tax has been lost due to fear of paying back taxes due to low tax compliance. Also, most landlords were not aware of Rental income tax, due to low awareness from the revenue department.With the new amnesty from KRA, it will be a relief for many real estate owners in Mombasa who have huge amount of back taxes from the past.

The amnesty

Kenya Revenue Authority has issued an amnesty to landlords for past evasion of taxes on rental income.  The amnesty will be for a period of 12 months from 1st July 2015 to 30th June 2016. For 2016 Tax period, failure to apply you will be subjected to payment of rental income tax for the past 7 years.

All individual Landlords are eligible for the amnesty, if you disclose undeclared rental income for year 2014 and 2015 and submit returns.  In addition the amnesty will include relief on principal tax and interest and any penalties.

Benefits of the Amnesty

  • Full tax relief for year 2013 and prior on any rental income.
  • For year 2014/15 you will only be subjected to principal tax payment
  • After the Amnesty rental income will be reduced to 10% from the previous 30%
  • User friendly application process.
  • If you fully disclose your undeclared rental income, will be exempted from any  tax compliance audit.

Application

The application has been available since July 1st this year on the KRA website, visit www.kra.go.ke for application details.

  • Download the form
  • Complete the form and submit it to your station or the nearest KRA’s Domestic Taxes station for processing.
  • Assure you file your tax returns

Find the Step by step guide for the Application – Amnesty Application Guidelines

 

For further information, please contact Taxpayer Education Programme Tel. +254 (020) 2812010/2816095 or KRA Contact: Tel; +254 (020) 4999999 Cell: +254 (0711) 099 999 Email: callcentre@kra.go.ke Domestic Taxes Department Head Office Times Tower Building, 19th Floor Haile Selassie Avenue P.O. Box 30742-00100, Nairobi, Kenya Tel: 020-310900 Website: www.kra.go.ke KRA Online Services Portal: http//www.kra.go.ke/portal

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Jammy is professional communication specialist in Mombasa, founder of Life in Mombasa she has vast experience on Social Media marketing. She holds a Bachelors degree in Arts emphasis on Interpersonal communication from Metropolitan State University in Minnesota (USA). Jammy is experienced in understanding human interaction as well as creating a stronger relationship between consumers and companies.