Kenya's trajectory success in international taxation
Nairobi, Monday June 5, 2023
KNA Phinta Amondi /Peace Muthoka
Kenya has made significant progress in international taxation and as a signatory to many international tax activities.
Cabinet Secretary for National Treasury and Economic Planning Prof. Njuguna Ndung'u said that the country has been participating in international forums which in turn contributes to development of tax solutions.
He also singled out Organization for Economic Cooperation and Development (OECDs) in the United Nations, and the African Tax Administration Forum and East Africa Revenue Authority as some of the taxation forums the country has been participating in among others.
The CS made the remarks in a speech read on his behalf by Principal Secretary (PS) James Muhati during the Kenya Revenue Authority (KRA) and the International Centre for Tax and Development (ICTD) International Conference held on Monday at a Nairobi hotel.
The three-day conference themed 'Global Tax Governance at Crossroads' brings together more than 130 researchers and key actors in the sector from around the globe to debate on key issues regarding tax policy and Kenya's success within the international taxation and emerging issues of developing countries.
It also seeks to address and improve tax policies as well as focus on administration in lower income countries.
He disclosed that KRA manages international tax matters such as double taxation agreements, mutual agreement procedures, incentive review, implementation of OECDs and implementation of the policy as well as erosion and profit shifting agenda recommendations domestically.
"Despite the progress made so far, the country is faced with a myriad of challenges related to international taxation, such as globalization which has both increased capital flows of foreign direct investments and portfolios investments,” said Ndung’u.
He added that the international taxations are also expected to increase tax revenue for developing countries.
Further, he said that digital taxation is relatively new in terms of defining value in the Digital Business on addressing concerns related to tangible assets that underpin the industry.
ICTD Executive Director Wilson Prichard said that the Organization for Economic Cooperation and Development Inclusive Framework negotiations draws towards reforming international tax rules while including numerous changes to accommodate low-income countries.
He remarked that its redistribution creates complexity and sovereignty citing Kenya amongst one of the four countries who have signed it as a condition of trade negotiations with the United States.
"There's a growing appetite for more radical redistribution and simplification which is unlikely to be satisfied by the two-pillar solution," said Prichard.
Courtesy ; K. N. A
What's Your Reaction?