In previous articles, we have tackled what exactly is Rental Income Tax and how to compute the tax. In this post, we will focus on how to file the tax after computation. Landlords should keep it in mind that Rental Income Tax is a final tax and it is paid on a monthly basis. As such eligible landlords will not be required to file annual returns unless one has other incomes for example from commercial rent, employment income, farm income among others.
The return is filed online via the iTax system and here is the procedure;
- Log on to the iTax system. Note that to be able to use the system you have to register with iTax here.
- Download the residential rental income tax return form (the return can also be completed online )
- Fill in the required details in the form
- Upload the completed return and submit.
- Generate the electronic payment slip to use in paying the tax at any KRA appointed bank or through Mpesa/Airtel money.
- To pay via mobile money, select the payment option of cash while generating the payment slip.
- Paying via Mpesa, use the KRA paybill number 572572 and the account number is the Payment Registration Number quoted at the top right corner of the generated Payment Slip.
- Paying via Airtel Money, dial KRA USSD code *572# to access the menu and select the E-slip generation self-service menu. Proceed to make payment using the E-slip number