KPMG analysis of Special Economic Zone Act 2015
KPMG analysis of Special Economic Zone Act 2015
On 11 September 2015, the President assented to various Acts of parliament that are designed to spur investment and improve the ease of doing business in Kenya. Among the Acts that were assented to was the Special Economic Zone Act, 2015.
The Special Economic Act proposes a
number of interesting incentives for companies to operating under the special
economic zones. These include:
- Exemption from all taxes including Income Tax Act, Value Added Tax, excise duty and custom duty;
- Exemption of Stamp Duty on execution of instrument relating to business activity in the SEZ;
- Exemption from provisions of Foreign Investment and Protection Act and Statistics Act;
- Exemption from certain licences e.g. General Liquor and Hotel Liquor licences, manufacturing licence under Tea Act, Filming Licences among others.
The Special Economic Zones provide a much wider platform than the Export Processing Zone (EPZs) which have been in place for a number of years. The key changes include the extension of incentives to include the provision of headquarter services which would be of interest for companies that seek to make Kenya their base for regional operations.
KPMG Tax Services has summarised the salient features of the Special Economic Zone Act together with the potential impact that the Act will have. You can access the analysis by clicking on the link below.
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