Kenya’s National Assembly approved the ratification of the Multilateral Convention to Implement Tax Treaty-Related Measures to Prevent Base Erosion and Profit Shifting (MLI).
This follows after Kenya ratified the Multilateral Convention to Implement Tax Treaty-Related Measures to Prevent Base Erosion and Profit Shifting (MLI) with the OECD on 22 July 2020.
Once the internal ratification process is finalised, Kenya must deposit its ratification instrument to activate the MLI for its covered agreements. The MLI will come into effect for a specific covered agreement on the first day of the following three months after both parties have submitted their ratification instruments.
The MLI provisions will generally apply to a covered agreement. For withholding taxes, they take effect on the first day of the next calendar year after 30 days from the date Kenya deposited the notification. For other taxes, they apply from the taxable period starting six months after the same notification deposit.
