VAT on rental income is back!
Rental income on non-residential buildings (commonly referred to as commercial property) will attract VAT at the standard rate of 16%. This is effective from January 2008. This change will have an impact on developers and owners of property including insurance companies, banks and pension funds who are among the major property owners in Kenya. It will also have an impact on tenants. According to the Minister of Finance, this amendment is aimed at encouraging further expansion of commercial buildings, which has been brought about by increased economic activities.
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