Taxation of Rental income in Kenya
There are two regimes ( Annual or Monthly) when it comes to Taxation of rental income.
depends on ;
i)purpose for which a house is rented ( Residential /Commercial purpose)
I)Amount of Rent per month/Yr
@johnnjenga @AmbokoJH @kasiva_mutisya
There are two regimes ( Annual or Monthly) when it comes to Taxation of rental income.
depends on ;
i)purpose for which a house is rented ( Residential /Commercial purpose)
I)Amount of Rent per month/Yr
@johnnjenga @AmbokoJH @kasiva_mutisya
Monthly Regime:
This is what is popularly know as as MRI -Monthly Rental income —
It is charged under section 6A of the income Tax Act .
It applies where the Rent at least 288000 per month but below 12M
MRI is charged at a flat rate of 10% on gross rent received per month
This is what is popularly know as as MRI -Monthly Rental income —
It is charged under section 6A of the income Tax Act .
It applies where the Rent at least 288000 per month but below 12M
MRI is charged at a flat rate of 10% on gross rent received per month
The tax is payable on a monthly basis on of before 20th of the following month —-
MRI is a final Tax meaning that no other Tax is charged on this income .
MRI is a final Tax meaning that no other Tax is charged on this income .
Where the rental income is below 288000 per year ( 24000) per month and above 12M per year you are expected to opt for the Annual Regime
Annual Tax Regime for Rental income ;
This regime is primarily applicable where the Rental income is from commercial us of property .
Unlike the MRI regime where the Tax is charged on gross; here it’s charged on profit.
This regime is primarily applicable where the Rental income is from commercial us of property .
Unlike the MRI regime where the Tax is charged on gross; here it’s charged on profit.
Under the annual Regime , you are allowed to deduct all expenses associated with earning the rent income as provided for by sec 15 of the ITA.
The tax is charged at a rate 30% on the net Rental income of at an individual graduated scale where the Landlord is an individual.
The tax is charged at a rate 30% on the net Rental income of at an individual graduated scale where the Landlord is an individual.
The annual Regime also applies where the rent income received is below or above the threshold of the MRI
# per year not per month
Loading suggestions...