July 2021

Residential Income 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...

Tax Implications on Transfer of Land

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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