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Economy

KRA sets tax deadline for landlords

Kenya Revenue Authority commissioner- general John Njiraini  during a previous Press briefing on capital gains tax.  The tax was scrapped on Thursday.  PHOTO | DIANA NGILA
Kenya Revenue Authority commissioner- general John Njiraini during a previous Press briefing. He called on landlords to pay tax on rental income before June 2016. PHOTO | DIANA NGILA 

The Kenya Revenue Authority has given landlords up to the end of June next year to pay tax on rental income for the years 2014 and 2015 before the taxman embarks on audits to establish their compliance status.

KRA commissioner-general John Njiraini on Tuesday said the amnesty covers interest, penalties and also the principal amount of tax due for all the years in the past.

It is the first time in Kenya that a tax amnesty also includes the principal amount, he added.

HELPING TAX PAYERS

In a briefing to the press on Tuesday, Mr Njiraini said that the authority is keen on helping tax payers comply rather than pursue punitive methods of collecting taxes.

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The KRA boss says many landlords had failed to comply due to various challenges including low level of education, ignorance of tax obligations, complexities of compliance and poor record keeping, especially of their expenses which are deductible from the payable tax.

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