{"id":9515,"date":"2019-09-20T12:41:35","date_gmt":"2019-09-20T12:41:35","guid":{"rendered":"https:\/\/kenyahomes.co.ke\/blog\/?p=9515"},"modified":"2019-09-21T08:20:27","modified_gmt":"2019-09-21T08:20:27","slug":"what-is-residential-rental-income","status":"publish","type":"post","link":"https:\/\/kenyahomes.co.ke\/blog\/what-is-residential-rental-income\/","title":{"rendered":"What is Residential Rental Income Tax?"},"content":{"rendered":"\n

This is tax payable by resident persons on residential rental income accrued or derived in Kenya where the rent income is between Kshs. 144,000 (Kshs. 12,000 per month)<\/strong> and Kshs. 10 million per annum.<\/strong><\/p>\n\n\n\n

What is the Tax Rate?<\/strong><\/h4>\n\n\n\n

The rate of tax is 10% on the gross rent received and is payable when landlords receive rent from their tenants either monthly, quarterly, semi-annually or annually. However, returns must be filed monthly.<\/p>\n\n\n\n

No expenses, losses or capital deduction allowances shall be allowed for deduction from the gross rent.<\/p>\n\n\n\n

How do I file for Residential Rental Income?<\/strong><\/h3>\n\n\n\n

Rental Income is filed on or before the 20th<\/sup> of the following month. For example, rent received in January is declared and tax paid on or before 20th<\/sup> February.<\/p>\n\n\n\n

Landlords with rental income below Kshs. 144,000 or above Kshs. 10 million per year shall be required to file annual income tax returns and declare this rental income together with income from other sources.<\/p>\n\n\n\n

Complete a monthly tax return online via iTax by declaring the gross rent and tax payable will be computed automatically at a rate of 10%.<\/p>\n\n\n\n

For any month that the landlord does not receive any rent, he\/she shall file a NIL return. <\/p>\n\n\n\n

Residential rental income is final tax therefore, persons are not required to declare the same in their annual income tax returns. <\/p>\n\n\n\n

How do I pay for Residential Rental Income?<\/strong><\/h4>\n\n\n\n

After filing the return online via iTax, generate a payment slip and present it at any of the appointed KRA<\/a> banks to pay the due tax.<\/p>\n\n\n\n

After filing the MRI online return, generate a payment slip as follows;<\/p>\n\n\n\n