The National Treasury has announced plans to review the Rental Income Tax in the 2024/2025 Financial Year Budget....CONTINUE READING
This was communicated in the 2024 Budget Policy Statement after Kenyans shared their proposals and comments during the public participation stage.
Kenyans had asked for a review of the Residential Rental Income Tax regime to ensure fairness and improve tax collection.
It was noted that the new regime should consider progressive reduction and elimination in recognition of the role affordable rent plays in housing citizens.
Treasury noted that currently, the tax is imposed on residential rental income within a threshold of Ksh288,000 and Ksh15 million.
Landlords in this category are placed under a simplified tax regime at a rate of 7.5 per cent of the gross with an option of payment at the corporate rate.
“The simplification was introduced to enhance compliance though it has increased the number of taxpayers, it has not achieved the envisaged compliance with an estimated gap of Ksh27 billion in the year 2022,” the Policy Statement read in part.
Going forward, the government through the National Treasury will roll out nationwide registration of property agents. Additionally, the mapping will be attained through leveraging technology and will also involve real estate property.
“In this regard, and to ensure fairness and equity, the government will review taxation of residential rental income,” Kenyans were informed.
The government is seeking to expand the tax base to fund a Ksh4.2 trillion budget for the 2024/2025 Financial Year. Expanding the tax base is seen as a better alternative instead of relying on loans to finance the country’s operations…CONTINUE READING>>
