As a real estate company, Amara Realty is subject to various taxes and regulations set by the Kenya Revenue Authority (KRA). It’s essential to ensure compliance with tax laws and regulations to avoid penalties and legal consequences.
Capital Gains Tax:
The adjusted cost of acquisition includes the original purchase price, any expenses incurred during the purchase, and any improvements made to the land.
As a compliant real estate company, Amara Realty is responsible for paying capital gains tax on the profit earned from the sale of land. To ensure compliance, the company must maintain proper records of all land sales and calculate the capital gains tax correctly.
Income Tax:
Real estate companies in Kenya are subject to corporate income tax, which is calculated at a rate of 30% of the net income of the company. The net income is calculated as the company’s total revenue minus allowable deductions and expenses.
As a compliant company, Amara Realty is responsible for paying corporate income tax on its net income. To ensure compliance, the company must maintain accurate financial records and file its tax returns on time.
Stamp Duty:
As a real estate company, Amara Realty Company Limited understands the tax implications of selling land in Kenya. One of the taxes that must be considered is stamp duty, which is a tax on the transfer of property ownership. Stamp duty rates vary depending on the value of the property being transferred, and it’s important for both buyers and sellers to understand their respective obligations.
At Amara Realty Company Limited, we make the process easier for our clients by paying the stamp duty on their behalf at no extra charge. This not only simplifies the transaction process for our clients, but it also ensures that they are in compliance with tax regulations. As a responsible real estate company, we believe in being transparent with our clients and helping them navigate the complex tax landscape in Kenya.
Conclusion:
understanding the tax implications of selling land in Kenya is crucial for real estate companies like Amara Realty. Compliance with tax laws and regulations is essential to avoid penalties and legal consequences. At Amara Realty, we take our responsibility seriously and ensure that we maintain proper records, calculate taxes correctly, and pay the stamp duty on behalf of our clients at no extra charge. We believe in being transparent with our clients and helping them navigate the complex tax landscape in Kenya. With our commitment to compliance, we strive to provide our clients with a hassle-free and transparent transaction process.
