Taxation of retirement income plus from real estate/tenants?

RainerFW

New member

Member since 25 April 2018

RainerFW

04 March 2019 07:48:11

RainerFW

04 March 2019 07:48:11

Hi

can someone give me gross information please about

1. is there a taxation of income from retirement pensions, not working, no business?

2. Is there taxation of income from real estate when in retirement, not working?

3. What is the approximate rate?

4. I am Germany, so far staying max 6 month a year in Kenya as tourist. I am aware of double tax systems all over the world, lived there in various many countries. My question is regarding retirement situation only, not business, not employee. Means, not working but income.

Thanks
Rainer.

Kemunto_N

New member

Member since 10 October 2017

Kemunto_N

04 March 2019 09:28:52

Kemunto_N

04 March 2019 09:28:52

Morning Rainer,
To answer you're questions,
1. Yes you are being taxed above a certain figure on you're pension. Nowadays if you earn more than kshs. 4oo,ooo the amount above it is taxed i.e lets say you earn Kshs. 500,000 p.a the 400,000 is not taxed but the 100,000 is taxed.
2. Yes, rental income is still taxed even after retirement. The taxation rate for Rental Income is done monthly at a 10% of the total rental income.
In case you need further information you can check out KRA's website, they have some helpful information.

Kemunto

fnkirote

Member

Member since 10 September 2018

fnkirote

04 March 2019 21:02:14

fnkirote

04 March 2019 21:02:14

Dear Rainer,

To respond to your query,

On pension - for your case there is no tax deductible locally due to the double tax agreement between Kenya and Germany. Otherwise if the funds were held locally in a provident or pension fund the retirement age and residency status would be used for this interpretation.

On the second question, yes rental income tax (R.I.T) for residential property would apply at a rate of 10 percent of the gross rental income exceeding Kshs 144,000 per annum.

Many thanks
Fridah