Landlords advised to obtain TIN

LANDLORDS and those who sub-lease are urged to obtain a Taxpayer Identification Number before leasing as a requirement by the Internal Revenue Commission.
Commissioner General Betty Palaso (pictured) said the aim was to ensure that income not taxed through tax returns must be declared and taxed.
“When planning to lease, the landlord must first obtain a Taxpayer Identification Number (TIN) which is required for the purpose of entering into a lease agreement,” Palaso said.
“This is also for the purpose of compliance with stamp duty obligations. No housing variation will be granted where the Internal Revenue Commission does not have a stamped copy of the lease agreement.
“Failure to obtain a Taxpayer Identification Number to enable lodging appropriate income tax returns declaring the rental income and any other income will incur the full late lodgment penalty.
“This is an amount equal to the tax assessed or an amount of K100 per calendar month or part thereof, from the date the return was due and when received, whichever is the greater.”
She said the penalty for non-lodgment of income tax return was a fine not less than K500 and not exceeding K5,000, plus K50 for each day during which failure continued.
“Failure to lodge an income tax return constitutes an offence and defaulters will be prosecuted to the full extent of the law and be subject to severe financial penalties,” Palaso said.