Make savings with tax incentives

Indeed, where the cost of the capital assets is more than Sh200 million, the taxpayer is allowed to deduct the whole cost from his profits prior to determining the taxes payable by the company/taxpayer.

In addition, where the investment is made within the towns adjoining Nairobi, Mombasa and Kisumu the amount of the deduction from the profits will be one-and-a-half times the cost of the investment, which means the investor actually not only recovers the cost of his investment, but also obtains a bonus of 50 per cent of the cost to his credit.

These are just a few of the incentives that are available.

There are several other incentives that I have not mentioned, which you as a taxpayer may be eligible for.

A review of the available incentives actually shows that each taxpayer is entitled to some deduction and the big question is whether whatever you are doing can lead to some tax savings through these available incentives.

Whether you are an employee, an employer, an investor, a capital provider or insurer, there is an incentive available for you, which you most probably are not aware about.

kthuo@vivafricaltd.com