ISK MEETING WITH KRA OVER THE WITHOLDING TAX ON RENTAL INCOME
ISK on 31st January 2017 led a delegation made up of Kenya Property Developers Association, Estate Agents Registration Board, Upper Hill District Association and Shopping Centre Associations of Kenya to a meeting with KRA on the Withholding Tax on Rental Income.
The meeting discussed various concerns on the tax including the policy considerations and implementation challenges. The group had present various proposals including deferring the implementation of the tax.
The meeting agreed as follows:
- KRA will send a clarification on various implementation challenges that the different players have experienced on the tax
- Those with specific concerns should contact KRA who will give a ruling in writing so that it can be shared with other parties if necessary
- The bodies from the private sector will present data to demonstrate that the tax is detrimental to the real estate sector
- Joint sessions with KRA will be organized for members of the various bodies so that clarifications can be made on the tax administration.