The new tax reliefs announced by President Uhuru Kenyatta on Income Tax and Value Added Tax will be in place until August this year.
This is as the country continues to assess the economic impact of the Covid-19 pandemic.
According to the draft Tax Laws Amendment Bill 2020 published yesterday by the National Treasury, companies putting up hotels, hospitals, petroleum or gas storage facilities and manufacturing premises will now be allowed to claim up to 50 per cent of their investment as tax allowances for the first year of operations.
The bill spells out a wide array of tax relief measures affecting individuals and corporations. Those putting up commercial buildings and educational premises including student hostels can also claim up to 10 per cent of their investment annually on reducing balance.
These are part of the incentives headed to Parliament in the coming days that are expected to reduce the weight of economic constraints on individuals and businesses in Kenya impacted by the spread of the Covid 19 pandemic.
If passed, the draft Tax Laws Amendment Bill 2020 will also see individuals and businesses pay new taxes on some income streams previously exempted as Treasury seeks to balance tax reliefs and safeguard revenue collections.