IRC notes landlords’ responses

THE Internal Revenue Commissions has noted the responses from landlords in regards to the commission’s policy on income derived from rentals, Commissioner-General Betty Palaso says.
This follows an awareness in June informing landlords and tenants to be tax-compliant.
Landlords will paying tax on income received from rent by registering their Taxpayer Identification Number (TIN) with the IRC.
“The response has been mixed. In the case where the landlord and tenant are companies, there has been an increase in rental lease agreements lodged for the payment of stamp duty,” Palaso said.
“This also reflects the level of compliance in this area by corporate taxpayers.
“For individual landlords and tenants, there has been a decrease in housing variations because IRC has turned away tenants whose landlords do not want to comply with registration requirement for taxpayer identification number.”
Tenants will be fully taxed on housing allowance they receive if their landlords do not comply with registering for a Taxpayer Identification Number.
“There will be a loss in revenue to the country if both landlords and tenants do not comply with IRC requirements,” Palaso said.
“There will be revenue leakage where the tenant does not receive housing allowance but uses his/her salary or wage to pay the rent and the landlord does not have a TIN. To enforce compliance, IRC is currently data matching rental payments from various sources.”