The Kenya Revenue Authority (KRA) has unveiled a digital platform set to ease tax compliance for landlords and property owners in the country.
The system dubbed Electronic Rental Income Tax System (eRITS) is expected to boost revenue and ensure compliance by landlords to comply to payment of taxes.
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According to the government, the introduction of the the system is meant to ensure a fair environment for property owners and landlords in the country.
“Despite reducing the rental tax from 10 percent to 7.5 percent to encourage compliance, the government has been collecting 17 billion annually from rental income tax. Whereas estimates suggest that the potential revenue is at least Ksh.100 billion annually.
So we are actually collecting 17 percent of the potential, and that is quite low, which is why we welcome this initiative for us to be able to move to that target.” said Treasury Principal Secretary Dr Chris Kiptoo
