ADVOKS GLOBAL · KENYA
Export Processing Zones Act
29. Benefits accruing to export processing zone enterprises, etc.
Edition: 2023-07-01 · In force
29. Benefits accruing to export processing zone enterprises, etc.
(1)The export processing zone enterprises, the export processing zone developers and the export processing zone operators shall be granted exemption from all existing and future taxes and duties payable under the Excise Duty Act (Cap. 472) and Value Added Tax Act (Cap. 476) on all export processing zone imports for use in the eligible business activities of the export processing zone enterprise including machinery and equipment, spare parts, tools, raw materials, intermediate goods, construction materials and equipment, office equipment and supplies, and transportation equipment subject to the limitations on goods specified in the Second Schedule to this Act and according to the conditions specified in the Excise Duty Act (Cap. 472) and the Value Added Tax Act (Cap. 476).(2)Subject to subsection (1) and without prejudice to any other written law, the export processing zone enterprise, export processing zone developers and the export processing zone operators shall be granted the following exemptions—(a)exemption from registration under the Value Added Tax Act (Cap. 476);(b)exemption from the payment of excise duties as specified in the Excise Duty Act (Cap. 472);(c)exemption from the payment of income tax as specified in the Income Tax Act (Cap. 470) for the first ten years from the date of first sale as an export processing zone enterprise, except that income tax rate will be limited to twenty-five percent for the ten years following the expiry of the exemption granted under this paragraph;(d)exemption from the payment of withholding taxes on dividends and other payments made to non-residents during the period that the export processing zone enterprise is exempted from payment of income tax under paragraph (c);(e)exemption from stamp duties on the execution of any instruments relating to the business activities of an export processing zone enterprise;(f)exemption from quotas or other restrictions or prohibitions on import or export trade with the exception of trade in firearms, military equipment or other illegal goods;(g)exemption from exchange controls on payments for—(i)receipts of export processing zone exports;(ii)payments for raw materials, intermediate goods, tools, and spares, supplies, construction equipment and construction materials, capital equipment, office equipment, repatriation of royalties, management fees, technology transfer fees, profits, dividends, advertising expenses, inspection fees for quality control, debt service and any other legitimate business expenses; and(iii)capital transactions, except on capital funds raised from Kenyan persons subject to exchange control in which case remittance of dividends, profits, debt service and any other returns to such capital invested will be subject to the Exchange Control Act (Cap. 113);(h)exemptions from rent or tenancy controls; and(i)any other exemptions as may be granted by the Cabinet Secretary for the time being responsible for finance by notice in the Gazette.