On 1 July 2021, Kenya published the Finance Act 2021 in the official gazette. The act was signed into law by the president on 29 June 2021. The act was presented to Parliament by the Kenyan Treasury Cabinet Secretary on 4 May 2021. The act introduces a number of changes of tax measures including following transfer pricing provisions.
- Reintroduce the definition of the term ‘‘Control”.
- The introduction of a new definition of “permanent establishment”.
- The introduction of a new 30% of EBITDA interest deduction restriction for interest paid or payable to associated parties and third parties.
- The bill proposes CbCR to be enacted in line with the requirements of the members of the OECD / G20 Inclusive Framework on BEPS.
- Extend the scope of Digital Services Tax (DST).
