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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: 573
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: 573
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: 573
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: 573
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: 573
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.
19 Pages«<56789>»
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