Adoption of Finance Act 2019
07 Nov 2019
The President of Kenya signed the Finance Act 2019 on 7 November 2019. The Act proposes key amendments to various tax legislation in Kenya including: The Income Tax Act, the Capital Markets Act, and the Banking Act.
The Act exempts companies that implement projects under an affordable housing scheme upon recommendation by the Cabinet Secretary (CS) responsible for housing from "thin capitalization" provisions. This is meant to encourage nonresident persons to invest into the affordable housing scheme.
The Act has exempts investee companies of a REIT from income tax except for payment of a withholding tax on interest income and dividends to the extent that the shareholders are not exempt from income tax. This is meant to promote investments into REITs and to align the previous exemption of REITs with that of the investee companies.
Finally, the Act has widened the scope of the existing capital gains tax exemptions.
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Type:
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Promotion and facilitation (Investment incentives)
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