• Commercial property owners earning 5 million and above have been advised to to make full disclosure of Commercial rent received
• They are required to pay VAT at a rate of 16% of their commercial rent received.
Kenya Revenue Authority has vowed to hunt down landlords who fail to disclose full and correct information regarding income received from their rental properties.
Through a notice on local dailies on Tuesday, KRA warned rental property owners against providing wrong information in an attempt to escape payment of rental income tax.
"Section 6A of the income Tax Act CAP 470 requires any residential person receiving residential rental income amounting to Sh12,000 and above per month not exceeding Sh10 million per year to register for the monthly rental income -MRI," the notice reads.
The authority has noted that some residential property owners earning Sh10 million per year fail to make accurate declaration of the annual income received.
Commercial property owners earning Sh5 million and above have been advised to to make full disclosure of rent received under the Income Tax return.
According to KRA, commercial property owners are required to pay VAT at a rate of 16 per cent of their commercial rent received.
Recently, KRA cautioned Kenyans to reject the narrative that KRA is fighting any individual or business.
"We express our appreciation to compliant taxpayers for their contribution to national development," Francis Muthaura, the KRA board chairman, said on Tuesday during Taxpayers' Day celebrations.