Filming Equipment: Tax Laws Amendment Bill: No. 36

Filming Equipment: Tax Laws Amendment Bill: No. 36

Reference is made to the Kenya Gazette Supplement of 30th March 2020, No. 36 on Investment Allowance specific to Filming equipment by a local film producer. The Kenya Film Commission is guided by Kenya Revenue Authority through the Ag. Commissioner Customs and Border Control as follows:

The amendment relating to filming equipment was done on deduction on investment allowance under the Second Schedule (Sections 4, 5 and 15) item 1 (b) (ix) to the Income Tax Act, CAP 470 to provide for Capital expenditure incurred on filming equipment by a local film producer licensed by the Cabinet Secretary responsible for filming at a rate of 25% per year on reducing balance. This is therefore an amendment relating to income tax as far as financial books of the companies are concerned and is not a waiver on the importation of filming equipment by a local film producer.

On importation of filming equipment:

  • The rates of import duty are contained in the East African Community Common External Tariff (EACCET) and are dependent on the specific equipment. Duty rates could either be 0%, 10% or 25% of the customs value depending on where the item is classified in the CET referred. Specific duty rates can only be given where the equipment /items are known.
  • The Value Added Tax Act, 2013, in the First Schedule, Part 1, paragraph 54 exempts “Goods imported or purchased locally for use by the local film producers and local film agents, upon recommendation by the Kenya Film Commission, subject to approval by the Cabinet Secretary to the National Treasury”. The importer is therefore required to seek the necessary approval before declaring the goods.
  • Filming equipment are not exempt from Import Declaration Fees and Railway Development Levy and the importers of these equipment are required to pay these Fees and Levies at 3.5% and 2% of the customs value respectively.

Subscribe to our newsletter