KRA Goes After Landlords in a New Tax Collection Strategy

The Kenya Revenue Authority (KRA) will conduct a survey of rental properties across the country as it seeks to catch tax cheats and raise an additional Sh375 billion in the 2023/2024 financial year.

The tax agency will also link its tax system with the digital land registry to nab landlords not paying their full share of taxes, the Treasury disclosed in its budget planning document for the new fiscal year.

Property owners with annual rental income of between Sh288,000 (Sh24,000 per month) and Sh15 million (Sh1.25 million per month) are required to file a monthly return declaring the gross earnings rent from which tax payable is computed at the rate of 10 percent.

“Implementation of rental income tax measures by mapping rental properties. This will be achieved through enhanced field data analysis mopping up, integration of itax with the National Lands Information Management System and use of a mobile App,” the Treasury stated.

Business Daily reports that KRA is in the process of procuring a geographical information system (GIS) that will help map all the buildings in the country.

The Treasury expects the taxman to collect Sh2.566 trillion in the coming fiscal year, which is Sh375 billion more than the earlier target of Sh2.191 trillion. 

KRA is also seeking to integrate its system with telecommunication companies to help it monitor mobile money transactions and identify individuals and companies whose tax returns do not match the cash moving through their mobile phones. Last year, mobile money users transacted a total of Sh7.2 trillion, which is double the national budget.