IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 01 Jan 2018 | Removal date: open ended
Still in force

FDI: Treatment and operations, nes

As of 1 January 2018, Finance Act 2017 introduced several amendments which are relevant to the GTA scope and are established with the purpose of boosting the rate of investment in the  Special Economic Zones (SEZ) of Kenya. These highlighted amendments are:

  • The government for the first time exempted from withholding tax the dividends which non-residents receive from SEZ Enterprises, Developers and Operators.
  • The government for the first time introduced withholding tax-related preferential treatment for payments made to non-residents for royalty, interest as well as management, professional and training fees (i.e. payments made to non-residents by  SEZ Enterprises, Developers and Operators). Specifically, for these highlighted payments the tax rate will be 5% (instead of the 15% - 20% withholding tax rate which generally applies to all other non-residents not associated with SEZ Kenyan zones).

AFFECTED COUNTRIES

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