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.
  1. 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.
  1. 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 mwalimudauditrainingcentre@gmail.com
Enquiries can also be directed to the KRA Call Centre; Tel: +254
(020)4999999/+254 (0711) 099 999 or via email: callcentre@kra.go.ke. 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; rentalincome@kra.go.ke
For more details on the Residential Rental Income Tax visit the KRA website;
http://www.kra.go.ke (web page named; 2015 landlords legislation)

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