The purchase of land or property is major decision and therefore, all aspects that have a financial implication should be properly evaluated. It is important for the buyer to take into consideration all the tax implications in order to avoid instances of incompliance. The purchaser is required to pay stamp duty on the acquisition of a property. The stamp duty is calculated at the rate of 4% of the...
If you are like most first-time homebuyers, you will need a mortgage to finance the purchase of a new house. To qualify for a mortgage, you must have a good credit score and cash for a down payment that is usually between 10-20% of the purchase price. Without meeting these initial conditions, the traditional route to homeownership may not be an option in today's real estate...
Due to the current market trends land has escalated to high prices although there is still hope to become an apartment owner. A simple guide to becoming an apartment owner would be to first check whether the agents who are selling the apartments are registered under the Estates agents Registration Board simply because they exude professionalism and disregard dishonest practices. The estate...
Landlords in Kenya are required to account for tax on rental income either on monthly basis or annually depending on the nature of the rental income received.
Section 35 (1)(c) of the Income Tax Act provides that any person making payment to any non-resident person is required to withhold tax on payments of rent, premium or similar consideration for the use or occupation of property.
Installment tax is advance tax which is payable during the year of income. This is done before the accounts are done and finalized at year end in order to establish the actual tax payable.
The Kenyan law provides for a simplified tax regime on residential rental income ranging from KES 288,000 to KES 15,000,000 per annum. Under this regime, tax is calculated as 10% on gross rent received and is a final tax.
The simplified tax regime on residential rental income was introduced in Kenya with effect from 1st January 2016.It applies to residential rental income ranging from KES 288,000 to KES 15,000,000 per annum. Under this regime, tax is calculated as 10% on gross rent received and is a final tax.The landlord is required to file a monthly return and make payment by 20th day of the following month.The penalty...
The purchase of land or property is capital intensive and tax compliance is vital. Tax implications to the buyer The buyer is required to pay stamp duty on the acquisition of land. The stamp duty is calculated at 4% of the value of land while a 2% applies in instances where the land is located in other areas. Stamp duty is based on the value ascertained by a government valuer. This is done in...
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