On 5 June 2023, the Kenya Revenue Authority (KRA) has issued a public notice regarding the declaration of related party transactions. Accordingly, taxpayers that the Income Tax – Company Return on the i-tax system has been enhanced to provide disclosure of related party transactions to persons with related parties and who have proof of profits or gains from the business you are subject to the provisions of Section 18 or 18A of the Income Tax Act, Chapter 470.
When filing their returns, all taxpayers with related party transactions are required to answer, “Yes”, to the question, under the basic information sheet of the Income Tax Company, on whether they have related parties outside Kenya or control activities. The relevant details of related party transactions should be captured under the sheet ” B2_Related_party_transaction”.
