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Impact of 30% rental income tax on housing development in Kenya
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VituVingiSana
#161 Posted : Tuesday, June 19, 2012 11:49:04 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,346
Location: Nairobi
Bachuma Gate wrote:
Vitu - Your contributions are value addition. What I meant with mulolongo type is those "train" type of houses with a toilets at the end. They can even be mabati type. They could also have be constructed on land with certificates. Landlord collecting rent is always cat and mouse thing. Tenant volatility is high. Then factor in that these are in large numbers all over kenya. It may prove to be a headache for KRA. Its akin to the informal sector businesses. The moment some fellas realize they can earn more from this type of houses than the formal ones, they will prefer investing here. EG. In Pipeline Embakasi, almost all the flats are tuu rooms with toilets per floor cause they fetch much more than the greenspan type. You can see how thing is booming.

So yes it may drive guys to invest more in these type of structures. They will pay tax but well below their real incomes.
LOL, perhaps that's what I should be investing in Laughing out loudly Become a slum lord! When you said Mlolongo I thought the Mlolongo the town d'oh!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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VituVingiSana
#162 Posted : Tuesday, June 19, 2012 11:57:57 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,346
Location: Nairobi
Lolest! wrote:
VituVingiSana wrote:
]It's a slow process but if the Taxman wants to determine how many units are rented, it will ask the landlord to certify how many units are occupied. Then it can 'raid' all the vacant properties to see if they are rented. Finally, it can access electricity & water records of each unit. If Flat A uses 1,000 KW monthly & is occupied, why is Flat B using 1,000 KW yet is unoccupied?

Could be a relative being given free accommodation. Estate agents are known to steal from landlords this way by claiming that some units were unoccupied so that they pocket the rent. This is a loophole but KRA could audit the landlord's accounts to find the rent details.
Well, then the Landlord has to 'prove' there is no rental income from the vacant property. Are there ways around paying taxes (Tax Evasion)? Yes. Nevertheless, if one is caught in a lie, it gets pricier by the month.

If an estate agent cons a Landlord then it can be considered a crime. The Landlord will go scot-free since there was NO income collected but if the KRA turns its attention to the Agent (with the Landlord's assistance) then it gets interesting!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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VituVingiSana
#163 Posted : Wednesday, June 20, 2012 5:47:25 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,346
Location: Nairobi
Lolest! wrote:
VituVingiSana wrote:
]It's a slow process but if the Taxman wants to determine how many units are rented, it will ask the landlord to certify how many units are occupied. Then it can 'raid' all the vacant properties to see if they are rented. Finally, it can access electricity & water records of each unit. If Flat A uses 1,000 KW monthly & is occupied, why is Flat B using 1,000 KW yet is unoccupied?

Could be a relative being given free accommodation. Estate agents are known to steal from landlords this way by claiming that some units were unoccupied so that they pocket the rent. This is a loophole but KRA could audit the landlord's accounts to find the rent details.
Well, then the Landlord has to 'prove' there is no rental income from the vacant property. Are there ways around paying taxes (Tax Evasion)? Yes. Nevertheless, if one is caught in a lie, it gets pricier by the month.

If an estate agent cons a Landlord then it can be considered a crime. The Landlord will go scot-free since there was NO income collected but if the KRA turns its attention to the Agent (with the Landlord's assistance) then it gets interesting!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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a4architect.com
#164 Posted : Wednesday, June 20, 2012 8:55:49 AM
Rank: Veteran

Joined: 1/4/2010
Posts: 1,668
Location: nairobi
Githae /Njiraini are on the right path regarding taxation.

Once they set an enabling environment for collection of idle land tax, probably after enacting the land commissions, this will result in flooding of land for sale hence reduction of land prices.

People will now opt to buy land and construct as opposed to renting. This will cause a surge in employment within the construction sector hence reduction of crime rate,poverty, unemployment,landlessness e.t.c
This, coupled with Turkana Oil is the solution for Kenya's economy.
As Iron Sharpens Iron, So one Man Sharpens Another.
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ralp_mutu
#165 Posted : Wednesday, June 20, 2012 8:49:06 PM
Rank: Member

Joined: 3/26/2012
Posts: 232
Location: Nairobi
On landlords paying tax from the rent income Njiraini said the issue has been blown out of proportion by the media and wazua

http://goo.gl/fb/hNZvt
My folks told me that my very first word was 'billionaire'
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ralp_mutu
#166 Posted : Wednesday, June 20, 2012 8:50:53 PM
Rank: Member

Joined: 3/26/2012
Posts: 232
Location: Nairobi
Kulipa ushuru ni kujitegemea
My folks told me that my very first word was 'billionaire'
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mnandii
#167 Posted : Wednesday, June 20, 2012 9:09:29 PM
Rank: Elder

Joined: 10/11/2006
Posts: 2,304
ralp_mutu wrote:
Kulipa ushuru ni kujitegemea


YES! More Kenyans in the middle class bracket to feel SUFFICIENTLY ANGRY when their tax money is wasted by MPigs. Good for democracy!

Applause Applause Applause Applause
Conventional thinkers waste time building shelters when they are unnecessary and then have no shelters when they need them the most. Socionomists do the opposite.
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mawinder
#168 Posted : Friday, June 22, 2012 6:27:39 PM
Rank: Elder

Joined: 4/30/2008
Posts: 6,029
ralp_mutu wrote:
Kulipa ushuru ni kujitegemea

i wont pay and will strive to avoid and evade taxes as much as possible.it is common knowledge an mp from nakuru county made his millions by sliding kra cheques,used the money to build a palatial home in karen and to get him to parliament where he has enjoyed tax free salary and given a grant to buy a duty free car.githae should know that i struggled to build my real estate unlike him whose abnormal salary is cushioned from tax.
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Ali Baba
#169 Posted : Friday, June 22, 2012 6:56:57 PM
Rank: Member

Joined: 8/29/2008
Posts: 573
MAWINDER: Avoiding is fine.No qualms about it.But when you evade,know that KRA might one day catch up with you!!!
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nakujua
#170 Posted : Friday, June 22, 2012 7:05:37 PM
Rank: Elder

Joined: 12/17/2009
Posts: 3,583
Location: Kenya
Ali Baba wrote:
MAWINDER: Avoiding is fine.No qualms about it.But when you evade,know that KRA might one day catch up with you!!!


Cowards die many times before their deaths;The valiant never taste of death but once
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