MONTHLY RENTAL INCOME TAX IN KENYA.

WHAT IS MONTHLY RENTAL INCOME?

This is income derived from renting out residential properties for use or occupation

WHAT IS MONTHLY RENTAL INCOME TAX?

This is a tax on gross residential rental income between 288,000 (ksh. 24,000 per month) and 15,000,000 per annum and the tax is 10% on gross rent payable monthly on rent received.

The Finance Act 2015 introduced a new Section 6A in the Income Tax Act Cap 470 Laws of Kenya, which provided for a simplified tax regime on rental income and was introduced in January 2016.

What are the benefits of being in the Monthly Rental Income tax?

-Monthly Rental Income is a final tax and thus you do not need to file the annual income tax returns.

-It is taxed at a flat rate of 10% and thus you are certain of the tax payable.

-No much record keeping required by the landlord in terms of the expenses incurred as the rent received is the only compulsory record to maintain.

Remember to file and remit your Monthly Rental Income Tax by 20th of every month

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