Tax
From The Report: Kenya 2016
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This chapter contains an overview of the tax framework within which local and international investors operate in Kenya, including an examination of the free trade agreements in place and how they are enabling more foreign investments. A rundown of the proposed changes to tax laws currently under examination is also included.

This chapter contains a viewpoint by Gitahi Gachahi, CEO, EY Eastern Africa.

Articles from this Chapter

Overview

Duties in detail: A look at tax regulation and recent changes
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Kenya has a broad taxation system covering income taxes, value-added tax (VAT) and Customs and excise duty. These are governed by independent legislations that make provisions for the charge, assessment and collection of the respective taxes. The Kenya Revenue Authority (KRA) has different sections that deal with the above taxes and have authority to undertake reviews on companies to confirm they are paying the right tax. Equally important for protection of revenue leakage is corporate governance…

Analysis

New procedures: Modernising the country’s tax processes
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A modern tax framework should make tax systems, processes, methods and laws more convenient to all taxpayers. In the 21st century, modernisation through IT platforms has reduced the number of inconveniences faced by taxpayers in the past. Ongoing Process Modernisation of the tax laws and systems in Kenya has been an ongoing process since 2003, mainly steered by the government and implemented by the Kenya Revenue Authority (KRA). During this time, we have seen an increased level of participation…

Viewpoint

A rigorous approach: Gitahi Gachahi, CEO, EY Eastern Africa, on curbing tax avoidance techniques
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The Kenya Income Tax Act requires that transactions carried out between non-resident and resident-related parties be conducted at arm’s length. The act further empowers the commissioner to adjust the returns earned by the resident company from such transactions to reflect returns conducted between independent parties. Until the enactment of the Kenya Income Tax (Transfer Pricing) Rules of 2006, there had been protracted disputes between the Kenya Revenue Authority (KRA) and taxpayers, most notably…