Kenya Revenue Authority pushing for new tech laws

By professo

The Kenya Revenue Authority (KRA) has announced its plans to enforce a new rule that requires international tech companies to reveal revenue generated in Kenya.

The potential new legislature aims to deter revenue leakage by tax avoidance.

The plans will be a modification of the Transfer Pricing Rule 2006, which is part of the 1973 Tax Act overhaul.

The KRA are especially targeting larger companies with the regulation – firms such as Amazon, Google, and Facebook have a reputation for making high profits in Kenya but declaring their profits in countries with lower tax.

SEE ALSO:

“Most (e-commerce) businesses are done on Amazon, Google and the rest,” commented John Njiraini, Outgoing Commissioner-General at KRA.

“As we have seen, the bigger problem is that these institutions have the capacity to create structures that allow them to do business in many jurisdictions and get the money paid in jurisdiction of their choice.”

“The global response has been bringing all the countries together and have a discussion.”

“That’s what we may do as a country, but we are not able to address it unless there’s a proper global response.”

Share

Featured Articles

SAP creates new EMEA region and announces new President

SAP has announced it has appointed a new President for a newly-created EMEA region, aiming to make the most of the opportunities of cloud and AI technology

How SAP is facilitating continuous business transformation

Technology giant SAP has expanded its portfolio with the acquisition of LeanIX, a leader in enterprise architecture management (EAM) software

Siemens and Microsoft: Driving cross-industry AI adoption

To help businesses achieve increased productivity, Siemens and Microsoft are deepening their partnership by showcasing the benefits of generative AI

Sustainability must become central to corporate strategy

Sustainability

The endless benefits of putting your people first

Leadership & Strategy

Working from anywhere: SAP uncovers secret life of employees

Human Capital