Investment Deductions/ Allowances

Investment Deductions/ Allowances

Paragraph 24 of schedule 2.It is essentially for the production of buildings and installation of machinery therein. For it to be deducted , the taxpayer must own both building and machinery. The major emphasis of this deduction is to encourage industrialization in two major fronts.

(1)  Allow deductions at a higher rate if construction of industrial building and machinery is done out of Nairobi and Mombasa then in the year 1999 the deduction would be at 16% of the cost of building and machinery.

1990-75 %.The rates for Mombasa and Nairobi are higher than other towns.

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