Kenya removes two types of large taxes to reduce citizens, local and foreign investors, in order to raise the level of the Kenyan economy in all areas.
The Kenyan government removed two new types of taxes, to support local investors and companies in order to achieve significant development and prosperity in the local economy.
As part of the Kenyan government's economic plan release this year, President Uhuru Kenyatta announced today that the removal of two barriers to expansion had been faced by companies.
"At present, the costs associated with exploring are often whether you want to invest in new assets or business models that are not deductible for tax purposes," Uhuru Kenyatta said.
Business owners tell us that this can deter them from spending money looking for the best way to do things.
Uhuru Kenyatta added that we are changing this so that local companies and foreign investors can deduct the feasibility expenses from their tax bills, including projects that are not going forward.
This measure will be included in the draft tax law that will be submitted to the Kenyan Parliament, early this year, which means that the change can begin from the beginning of the next tax year.
While the second proposal announced today, will change the rules of continuity of loss in Kenya, in order to facilitate the startups attract investment and start working.
According to the rules currently in effect in Kenya, a one-year loss company can use this loss to reduce its taxable income in the future, but the rules do not work well for startups trying to attract new investments.
The changes announced today in Kenya, as part of the Kenyan government economic plan, depend on initiatives already announced.