Type: Legislation
Kenya will revise the requirement for arm’s length pricing for preferential tax regimes, as well as the CbC reporting requirements and the Digital Services Tax.
The Finance Bill 2022, which contains the policies announced as part of the Budget Statement for 2022/23, has been released by Kenya’s Parliament. The Bill also includes a few more essential measures in addition to the ones already mentioned.
One of these initiatives is for Section 18A of the Income Tax Act to be repealed, which imposed an arm’s length pricing requirement for resident related parties when one party is operating under a favorable tax regime.
Effective date: 2022/2023
