wazua Tue, Nov 19, 2024
Welcome Guest Search | Active Topics | Log In | Register

10 Pages«<23456>»
Impact of 30% rental income tax on housing development in Kenya
Ali Baba
#61 Posted : Friday, June 15, 2012 10:08:26 AM
Rank: Member


Joined: 8/29/2008
Posts: 571
BAICHUMA GATE:Kiyosaki would be impressed because the house also appreciates in value.You earn your rental income and accrue capital gains.
Bachuma Gate
#62 Posted : Friday, June 15, 2012 10:09:29 AM
Rank: Member


Joined: 3/26/2012
Posts: 280
I dont have houses so i am not one of them. I am worried about my landlord increasing rent and was eyeing to invest in this sector in future. Guess will have to look somewhere else because that is a 3.36%pa return. Ofcourse without factoring in property appreciation and depreciation.
DOH
a4architect.com
#63 Posted : Friday, June 15, 2012 10:27:21 AM
Rank: Veteran


Joined: 1/4/2010
Posts: 1,668
Location: nairobi
Njiraini impressed me with his proposal to tax idle land coz this will result in so much land being offloaded to the market hence overall reduction in cost of land hence low housing costs. Housing prices in kenya re high coz of high land prices and not high materials and developer profits.

Njiraini should strive to avoid overburdening the tax on low class/middle class who are the engines of production e.g with rental income tax. The net result is in pushing rents high hence middle /low class who are majority renters will not be able to produce more effectively.

Njiraini should look at creating enabling environment for the low/middle class then tax the created wealth. As for the high class, he can tax mercilessly through idle land tax to bridge the gap.

Such rent tax could easily create mass chaos/riots/coups when majority can not be able to provide housing, a basic human need to their families.
As Iron Sharpens Iron, So one Man Sharpens Another.
Ali Baba
#64 Posted : Friday, June 15, 2012 10:28:06 AM
Rank: Member


Joined: 8/29/2008
Posts: 571
BAICHUMA GATE: I understand your concerns,but the tax for the police,KDF and others who keep us safe from Al Shabaab is for all of us.Let's shoulder this burden together.HARAMBEE!!!!Tulipe ushuru!!
Ali Baba
#65 Posted : Friday, June 15, 2012 10:29:39 AM
Rank: Member


Joined: 8/29/2008
Posts: 571
I meant the tax bill for the police,KDF and others.....
Bachuma Gate
#66 Posted : Friday, June 15, 2012 10:31:40 AM
Rank: Member


Joined: 3/26/2012
Posts: 280
My friend Ali. You are missing the point severally. I am not discussing avoiding tax. I am discussing ROI and housing devpt pls. In the analysis you gave the ROI is 3.36%pa. Maybe it will go up slightly if you factor property appreciation and depreciation. That is almost what you get with Fixed deposit account without any hassle.
DOH
Ali Baba
#67 Posted : Friday, June 15, 2012 10:32:21 AM
Rank: Member


Joined: 8/29/2008
Posts: 571
ARCHITECT:Njiraini's provision for an enabling environment does not include tax evasion which is illegal.Please read the income tax act cap 470.
Ali Baba
#68 Posted : Friday, June 15, 2012 10:34:52 AM
Rank: Member


Joined: 8/29/2008
Posts: 571
BAICHUMA GATE: But all of you are arguing like its wrong to tax rental income.Its not.The impact of taxation I told you many times,I have travelled in over 12 countries and 50 cities and I never saw an investor stop investing because of taxation.Unless you are the first one....
Bachuma Gate
#69 Posted : Friday, June 15, 2012 10:36:10 AM
Rank: Member


Joined: 3/26/2012
Posts: 280
ALi may be you should start another thread about tax evasion cause you have hijacked my thread and given it a different dimension. Pls look at the first post again. We need to discuss useful things here.
DOH
a4architect.com
#70 Posted : Friday, June 15, 2012 10:36:33 AM
Rank: Veteran


Joined: 1/4/2010
Posts: 1,668
Location: nairobi
@alibaba..true..tax evasion is illegal and should be avoided.

Njiraini can set up systems that are fool proof to ensure this.

Another way is to make taxation fair such that there is no reason to avoid paying the tax i.e it creates a win-win for both govt and citizens.
As Iron Sharpens Iron, So one Man Sharpens Another.
Ali Baba
#71 Posted : Friday, June 15, 2012 10:37:10 AM
Rank: Member


Joined: 8/29/2008
Posts: 571
BAICHUMA GATE: Fixed deposits are for the lame and lazy.Deposits time expire and interests vary.Real estate is a lifetime investment...
Bachuma Gate
#72 Posted : Friday, June 15, 2012 10:39:57 AM
Rank: Member


Joined: 3/26/2012
Posts: 280
What about T/bills, Bonds, Pension schemes, stocks
DOH
Ali Baba
#73 Posted : Friday, June 15, 2012 10:40:24 AM
Rank: Member


Joined: 8/29/2008
Posts: 571
BAICHUMA GATE: I did not hijack your thread.I just responded to the issues raised.And no one fails to invest cos of taxes....did I answer your original question???
Ali Baba
#74 Posted : Friday, June 15, 2012 10:41:58 AM
Rank: Member


Joined: 8/29/2008
Posts: 571
BAICHUMA GATE: Why are you testing me?? Next question....
Bachuma Gate
#75 Posted : Friday, June 15, 2012 10:45:32 AM
Rank: Member


Joined: 3/26/2012
Posts: 280
Ali Baba wrote:
BAICHUMA GATE: Fixed deposits are for the lame and lazy.Deposits time expire and interests vary.Real estate is a lifetime investment...


What about T/bonds, T/bills, Unit Trust, Stocks, Pension schemes?

I think I would be more bothered about how much I make not it what way so long as it is legal.
DOH
Rahatupu
#76 Posted : Friday, June 15, 2012 10:45:48 AM
Rank: Veteran


Joined: 12/4/2009
Posts: 1,982
Location: matano manne
a4architect.com wrote:
@alibaba..true..tax evasion is illegal and should be avoided.

Njiraini can set up systems that are fool proof to ensure this.

Another way is to make taxation fair such that there is no reason to avoid paying the tax i.e it creates a win-win for both govt and citizens.


My two cents on this:

1. Njiraini has done one thing he has widened his tax bracket, since house rent is bound to go up thus those from informal sector jua kali will pay up income tax somehow (if landlords increase rent by similar tax a percentage).
2. Investment in rental properties will stagnate at the current levels and maybe go down if the overall effect does not spur growth leading to reduced interest rates taxes notwithstanding.
Bachuma Gate
#77 Posted : Friday, June 15, 2012 10:51:19 AM
Rank: Member


Joined: 3/26/2012
Posts: 280
That's also my thinking but time will tell. Low ROI=less investment=less supply=increase in rent.
DOH
Rahatupu
#78 Posted : Friday, June 15, 2012 10:57:55 AM
Rank: Veteran


Joined: 12/4/2009
Posts: 1,982
Location: matano manne
tonicasert wrote:
The little tax i know, if u own a huge property portfolio, how about forming a company and claiming depreciation on property as an expense, netted off against rental income in calculating taxable income as a way of tax avoidance (not evasion)
.

Someone sort this out and advise:

If you have rental flats earning you say 100k per month with the following expenses:
1. Mortgage interest 114,000
2. Monthly maintenance costs of 10,000

What amount would KRA ask for as tax??
nakujua
#79 Posted : Friday, June 15, 2012 11:08:00 AM
Rank: Elder


Joined: 12/17/2009
Posts: 3,583
Location: Kenya
Ali Baba wrote:
BAICHUMA GATE: I think you are mistaken.The world over,no one would surpass investing in real estate for T Bills/Bonds.The interest rates vary all the time.Like in 2003,Tbill rates was so low.And I have told you before,no one stops investing because of taxes.Look you invest in T bills and such securities while accumulating enough capital to invest in real estate.Please read Robert Kiyosaki's Rich Dad's Guide to Investing---What the rich invest in and what the middle class invest in...The middle class invest they way you are arguing.The rich invest in real estate,and that's why they are rich.And please note all investment income is taxable.


The forbe's top 1000 richest only contains 76 individuals in the real estate sector.
Ali Baba
#80 Posted : Friday, June 15, 2012 11:11:38 AM
Rank: Member


Joined: 8/29/2008
Posts: 571
BAICHUMA GATE:Then keep worrying how much you make.Real estate is not for everyone....just the way stocks/bonds,bills are not for everyone.
Users browsing this topic
Guest (5)
10 Pages«<23456>»
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Copyright © 2024 Wazua.co.ke. All Rights Reserved.