Kenya: Transfer pricing, direct, and indirect tax measures in Finance Bill, 2023
Finance Bill, 2023 proposes a number of transfer pricing, direct, and indirect tax changes
Finance Bill, 2023 proposes a number of transfer pricing, direct, and indirect tax changes
The National Treasury tabled the Finance Bill, 2023 before the National Assembly on 4 May 2023.
The Finance Bill, 2023 proposes a number of transfer pricing, direct, and indirect tax changes including:
- Various transfer pricing changes including changes to the definitions of “related person” and “ultimate parent entity” for purposes of country-by-country (CbC) reporting
- A 15% withholding tax on income earned by digital content creators
- An increase of turnover tax from 1% to 3%
- Exclusion from interest deduction limitation rules for borrowings from resident lenders
- Reduction in corporate income tax rate applicable to branches from 37.5% to 30%
- Various changes to capital gains tax, including extension to property owned by partnerships
- A 35% pay-as-you-earn tax rate for income above Kes 500,000 per month
- A 3% contribution by employees and employers respectively to finance affordable housing projects
- An increase in the VAT rate on petroleum products from 8% to 16%
- An exemption of exported services from value added tax (VAT)
- Various changes to excise duties
- Introduction of an export and investment promotion levy on specified imports
Read a May 2023 report [PDF 5.1 MB] prepared by the KPMG member firm in Kenya
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