July 6, 2020
As NRA intensifies public awareness on the withholding of Rental Income Tax, the Commissioner of the Domestic Tax Department at the National Revenue Authority (NRA),Dr. Ibrahim Sorie Kamara,has admonished taxpayers including tenants, landlords, property owners, caretakers, agents and solicitors acting for and on behalf of the true owners of the property, to ensure they are in full compliance with their rental income tax as part of their contribution towards revenue generation in the country.
Dr. Ibrahim Sorie Kamara made the above call during the NRA weekly programme, where he made reference to Section 120 (3) of the Income Tax Act 2000 which he said requires tenants to deduct 10% from any rental income that exceeds the sum of Le 7,200,000.00 for private as well as institutional occupancies.
The issue of tenant withholding 10% from a threshold of all rents according to law has caused lots of apprehensions for Tenants across the country. It can be further noted that issues of disagreement, victimization and safety of the tenant are key concerns of the NRA.
The issues have been adequately addressed by the Institution. The Commissioner also emphasized the importance of the Taxpayer Identification Number (TIN) as a requirement for rental income taxpayers.
He emphasized that failure to comply by the landlord will lead to court action and Five (5) years imprisonment and/ or closure of the property. The NRA would collaborate with councils on data and ensure that field workers are able to identify people responsible to pay rental income tax in every district across the country. Commissioner Ibrahim Sorie Kamara said the NRA has a huge task in educating the wider populace on the payment of rental income tax but however, current figures shows there is a huge improvement on compliance.