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State four conditions under which import duty may be offset against income tax

      

State four conditions under which import duty may be offset against income tax

  

Answers


Wilfred
Duty may be offset on capital goods imported with prior approval of the Minister of Finance pursuant to Section 39(a) of the Income Tax Act.
Conditions
- The Capital goods should qualify for wear and tear allowance
- The capital goods should be used in a project, the cost of which is not less than seventy thousand United States dollars.
- The capital goods should be used within a period of two years from the date of first investment expenditure.
- The Minister should be satisfied that the investment is capable of generating net economic benefits to Kenyans.
- The project should be private and not funded by the government.
Wilfykil answered the question on February 15, 2019 at 09:12


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