Penny-Stocker wrote:Hello Wazuans!
I would like your help or clarification with depreciation. I am looking to source a 2004/Jan or Feb. registration Forester 2.5XT from Japan....IBC or SBT. I am hoping to land it in Mombasa in January/February of 2011. Will this unit be considered as 7-8 years hence 70% or 6-7 years/ 60% depreciation? That's a difference of about $800-$1,500 in duty to "Big Brother". Thank you all in advance!
- Penny-Stocker.
For you to pay the lowest duty the car must be 7 years old and have been registered in a month that precedes its arrival in Kenya.
For example a car registered in December 2003 will be 6 years and 11 months old in November 2010, hence it will fall into the tax bracket of 7-6 years old whose CRSP depreciation is 60%. Whereas a car registered in say June 2003 will be 7 years and 5 months old in November 2010, hence falls into the 7-8 year old tax bracket whose depreciation is 70%. Therefore when you import a car registered in the month preceding it arrival you will have the CRSP value depreciated by a greater amount resulting in lower import taxes
I would recommend that you import a car after march as there will be a greater variety to choose from. However if you find the right Jan 2010 registered car than go ahead in January as it will take a month for shipping, and so you will register it in feb.
As for the post-october duty tariff, i have not heard or experienced it so far in car importation.
Before you can be be old and wise, you must first be young and stupid.