STEP BY STEP GUIDE TO FILING RENTAL INCOME TAX FOR RESIDENCE.
- RENTAL INCOME TAX, RETURN FILING AND PAYMENT
- Rental income tax was introduced by Finance Act of 2015
- Rental income tax is 10% of gross rent
- It is a monthly tax payable by resident individual/person for rental income earned from use or occupation of residential property and which does not exceed kshs 10 million per annum.
- The effective date was 1st January 2016 and the first returns were filed on or before 20th February 2016.
- Filing of Return
- Log on to itax.kra.go.ke
- Go to ‘Returns’ menu
- Select the ‘Tax Obligations’ (Rent Income)
- Download the return
- Declare your property and tenant details ( if more than one property/tenant then please click on ‘Add Rows’). This can be done online or offline.
- Upload the return and submit. Itax system will automatically compute tax payable based on the gross rent income declared for the month.
- Payment of Tax Due
- Go to ‘Payments’ menu
- Select ‘ Payment Registration’
- Click ‘Next’. The system will take you to pre-payment registration details
- Select the ‘Tax Head’ (Income Tax)
- Select the ‘Tax Sub Head’ (Rental Income)
- Select the tax period. The system will auto populate the liability details
- Click on ‘Add’ and go to the ‘How do you want to pay’ section
- Select ‘ mode of payment’ as either cash (including mobile money), cheque or RTGS
- Select the ‘Receiving Bank Name’ from the list of appointed banks
- Click on ‘submit’ button to generate payment registration slip (E-Slip)
- Make payment at the selected ‘Receiving Bank’ by presenting the e-slip or;
- Pay via Mpesa;-
- Use the KRA Pay Bill Number 572572 and the Account Number is Payment Registration Number quoted at the top right corner of the generated E-Slip
- Pay via Airtel:-
- Dial KRA USSD code *572# to access the menu and select the E-Slip generation self-service menu. Proceed to make payment using the E-Slip number.
Note: To be able to file online, you need to first register with iTax via the iPage facility on the KRA website
For further clarification, please contact
David on 0771808925 or firstname.lastname@example.org
Enquiries can also be directed to the KRA Call Centre; Tel: +254
(020)4999999/+254 (0711) 099 999 or via email: email@example.com. You
may also contact the KRA Help Desk on Tel: +254 (020) 2816095 or visit the Desk at
Times Tower Building, Ground Floor or the nearest KRA Station for assistance. You can also communicate with KRA via email; firstname.lastname@example.org
For more details on the Residential Rental Income Tax visit the KRA website;
http://www.kra.go.ke (web page named; 2015 landlords legislation)