(1) Cabinet may, in its absolute discretion, grant complete or partial exemption from income tax to an enterprise declared to be an approved enterprise—
(a) under section 6(1)—from the production day for a period not exceeding the period specified in Schedule 3 (hereinafter referred to as “the tax holiday period”);
(b) under section 6(1A)—from the production day for a period not exceeding the period specified in Schedule 4 (hereinafter referred to as “the tax holiday period”).
(Substituted by Act 3 of 2013)
(2) Where the expiration of the tax holiday period does not coincide with the end of the accounting period of an approved enterprise, the income for the accounting period during which the last day of the tax holiday period falls shall be apportioned between the parts of the accounting periods which respectively precede and follow the end of tax holiday period; the income thus apportioned to the part of the accounting period which precedes the end of the tax holiday period shall be exempt from income tax.
(3) Notwithstanding subsection (1), in the case of a Group Enterprise that receives a tax holiday period under Schedule 3, Cabinet may, on the expiration of that tax holiday period, grant complete or partial exemption from income tax to an approved enterprise if the approved enterprise makes an investment specified under Schedule 5. (Inserted by Act 30 of 2019)
(4) The tax holiday period granted under subsection (3) must not be for a period exceeding five years. (Inserted by Act 30 of 2019)