Read Now »Globally, a number of real estate players, including governments that own property, have considered waivers to help tenants navigate through the current financial storm. The International Monetary Fund has waded into the debate, asking governments to find ways of protecting both the tenants and landlords. These tax measures include slashing of value added tax (VAT) from 16 to 14 per cent and waiving Pay As You Earn (Paye) for those earning Sh24,000 and below. “The net effect in terms of reduction in income tax will mean there will be more disposable income and, therefore, the power to purchase more. However, compliance on rental income tax has been poor, forcing the taxman to aggressively go after defaulters.

Source: Standard Digital April 14, 2020 05:48 UTC