KRA gives Google, Microsoft and other giants until 17 November to sign up for Kenya's 15% minimum tax

KRA gives Google, Microsoft and other giants until 17 November to sign up for Kenya's 15% minimum tax

The Kenya Revenue Authority has set 17 November as the deadline for large multinational groups to notify it that they fall under Kenya's new minimum top-up tax. The rules cover groups with consolidated revenue of at least €750 million, about KES 109 billion, in at least two of the previous four years. If such a group's effective tax rate on the profits it earns in Kenya comes out below 15%, it may owe a top-up to bring it to 15%. TechCabal lists Google, Microsoft, Coca-Cola, Nestlé, Unilever, DHL and TotalEnergies among the groups that could be caught, if they meet the conditions. This is Kenya's version of the OECD's global minimum tax, which is meant to stop large companies booking profits in low-tax countries while doing business elsewhere. The 60-day notification window opened in September. A notification must name the Kenyan company, its group, the group's ultimate parent, its financial year and the other group members operating in Kenya. Filing returns and paying any top-up have separate, later deadlines. For the Treasury it is a way to raise revenue from very large companies instead of borrowing more. What it will actually raise is not known yet: KRA has not published an estimate, and how much each company pays depends on how its profits and Kenyan taxes are counted under the new rules.

Sources: TechCabal