Section 11, The Finance Act, 2018.

The Income Tax Act, 2000 is amended in section 120 byrepealing and replacing subsection (3) with the following new subsection- "(3) This section shall apply to rental income as follows- (a) the rate of tax on taxable rental income shall be 10% with the taxable rental income being arrived at by granting to the landlord- (i) non-taxable threshold of Le 6,000,000 in the aggregate; and (ii) a tax deductible allowance of 10% of the gross rental income that is in excess of the non-taxable threshold. (b) individual tenants shall withhold tax on the full rent payable to non-resident landlords; (c) individual tenants shall withhold tax on rents payable to resident landlord if the rent payable is at least US$1,000 (or its equivalent in Leones) per annum; (d) institutional tenants paying rent to either resident or non-resident landlords shall withhold tax on the rent payable; (e) landlord receiving rent above the non-taxable threshold shall submit a copy of the tenancy agreement to the National Revenue Authority not later than 30 days after signing such agreement; (f) where rent is paid directly to an agent of the landlord, the tenant shall withhold the tax regardless of the residence status and amount of rent payable to the landlord; (g) the due date for the payment of tax on rental income and the filing of the relevant returns shall be- (i) the first day of each lease year (that is to say, the calendar day and month on which the lease or tenancy agreement came into force) with a grace period of 30 days; (ii) in the case of a tenancy in respect of which there is no written agreement, the first day of January of each calendar year with a grace period of 30 days; 11 4. 12 0. No. 2 Finance Act 2018 No. 2 Finance Act 20188 9 (h) any amount in respect of tax on rental income remaining unpaid beyond the grace period of 30 days shall attract interest at the prevailing commercial bank rate per annum for as long as it remains unpaid; (i) any profit accruing from a sub-lease or other sub-letting arrangement shall be taxed as if it were rental income; (j) the Commissioner-General may take or authorise an officer to take other enforcement measures, including sealing off the premises for which rental income tax remains unpaid beyond the grace period of 60 days after which a notification would have been sent to the tax payer within the first 30 days; (k) a landlord receiving rental income or on whose behalf a rental income tax is withheld and paid to the National Revenue Authority shall file a rental income tax return to the National Revenue Authority within 30 days of the date the rental income tax is due and payable containing the following information among others- (i) name and contact address of landlord and location of property; (ii) TIN of landlord; (iii) gross amount of rental income received; (iv) rental income tax payable; (v) evidence of payment of tax withheld by tenant or agent or paid by landlord; and (vi) any other information as deem necessary by the Commissioner. (l) rental income tax shall be payable on the rental market value or imputed rental value of owner's occupied premises used for business purposes consistent with this section.