Category Archives: REAL ESTATE TAXATION

INCOME TAX(AMENDMENT) BILL 2024: THE LIKELIHOOD OF DOUBLE TAXATION OF REAL ESTATE AND OTHER LEGISLATIVE CONSIDERATIONS TO NOTE.

My other observation is that the tax is likely to deflate the real estate industry since a lot of retirement and savings assets are channeled into the sector and might escalate the housing deficit in urban centers even further. This new taxhead is also likely to have the negative implication of wiping out savings of the many investment club groups who buy land and hold for future development.

The proposed law is attempting to upset the known principles of taxation and the structure of the Income Tax Act, by applying capital gains taxation rules to what essentially are revenue trades. This may later backfire by creating tax avoidance and aggressive tax planning loopholes in the Income Tax Act for well advised businessmen to exploit and curve tax obligations altogether, and I believe this will be a consequence of this proposed law.

KACITA Vs LANDLORDS; ADDRESSING THE QUESTIONS ON VAT ON COMMERCIAL PROPERTY RENT PAYMENTS.

At law, in transactions involving VAT traders, the absence of a clear segregation of the VAT component from the agreed-upon price implies that VAT is inherently integrated into the total amount paid. In the absence of a clear distinction being made of the VAT component from the consideration paid or rather if provision is not made for the VAT from the price agreed upon with the buyer(the tenant in this case), then VAT is deemed to have formed part of the price invoiced. In this case the 18% VAT already forms part of the rent that’s currently being paid by tenants, regardless of whether or not there was an express agreement to the contrary from the beginning.

RENTAL TAX COMPLIANCE GUIDE FOR LANDLORDS.

MARK RUHINDI Changes in tax law are frequent that for even the most specialized tax lawyers it becomes too frequent that we sometimes fail to keep up, and this is a call to government to strive to ensure that we don’t have changes to law as frequent as we have seen recently as this worksContinueContinue reading “RENTAL TAX COMPLIANCE GUIDE FOR LANDLORDS.”