AfriPulse
President William Ruto said his administration is working on tax reforms to enhance accountability and transparencyRuto said the reforms will ensure the country’s tax regime align with the Organization for Economic Cooperation and Development (OECD) frameworkThe head of state pledged to review the 1.5% digital tax charged on revenue generated from digital servicesMultinational companies providing digital services in Kenya could soon stop paying digital service tax.
President William Ruto speaking during a past event. Photo: State House Kenya.
Source: FacebookThis followed President William Ruto’s promise to review the digital tax, in the tax reforms currently undertaken by its administration.
Global tax reformsSpeaking during the American Chamber of Commerce (AmCham) meeting held in Nairobi on Thursday, March 30, Ruto said the reforms will ensure the tax align with OECD framework.
“The growth of digital commerce has forced many countries to impose Digital Services Tax measures on income derived in their jurisdictions. Kenya has also done the same. Following discussions with players in this sector, we have committed to review this tax regime and align it with the two-pillar solution currently being developed by the OECD inclusive framework,” said Ruto.Ruto noted the Kenya Kwanza government is finalising on tax reforms to take effect by June 2022, and enhance accountability and transparency.
Kenya’s stance on global digital taxKenya had disputed the OECD framework and demanded to know its share if it backs up the proposals that will see it scrap the digital service tax.
The country submitted fresh demands to the Organisation for Economic Co-operation and Development (OECD).
However, Ruto’s administration changed the tone as it moved towards attracting more foreign investors into the county.
Ruto’s tax reformsRuto said the new reforms will also ensure tax refunds are paid within the shortest time possible, which is six months.
“Tax refunds remains a thorn in the flesh of many businesses. We are making a drastic policy shift on this issue,” he added.The head of state also promised to repeal the Value Added Tax on exported services.
He said the tax renders the country uncompetitive, blockin
Source: Tuko.co.ke | Read More
