Kenya Will Improve Tax System
February 26, 2014 Taxation in Kenya
NAIROBI – The government of Kenya will attract new investors into the country using tax breaks, a revamped tax system, and a new tax filing process.
In a statement made at the State House on February 25th the President of Kenya Uhuru Kenyatta that the government is looking to make new changes to the national tax system, on top of several updates already made this year, in order to attract more foreign investors, and to ensure that the country is the primary business hub of the region.
According to the President, the government will eliminate selected tax rules which currently result in double taxation for multinational firms operating in Kenya, and a plethora of complimentary legislative changes and updates will also be made to significantly reduce the administrative and taxation barriers faced by international businesses when establishing a presence in the country.
This is not the first time this year that the national government has proactively changed tax rules to encourage more investment and business from overseas, with raft of new measures announced last week to expand the textile industry with tax breaks, waivers on VAT and import duties, and discounted land leases.
Earlier in February the government clarified the tax rules on the tax treatment of mining businesses by setting one tax rate for mining profits, and removing several duties and levies which were applied in the past but may have been difficult to determine and calculate.
The government is also actively trying to improve the efficiency, speed and ease of filing taxes by corporate entities, and within weeks will launch a new tax filing system specifically aimed at reducing the processing time of tax returns filed by businesses.
Photo by: Kevin Walsh