Kenya-based multinational companies with a minimum gross turnover of Sh95 billion will be compelled to disclose their country-by-country financial information from January next year, the new Finance Act 2022 said.
The move is meant to help stamp out corporate tax avoidance and marks a major raise from the Sh2.5 billion limit earlier proposal by Treasury Cabinet Secretary Ukur Yatani in January.
All multinational firms with total group revenues of above Sh95 billion will be required to provide the Kenya Revenue Authority (KRA) with details of their financial dealings in each of the countries where they have operations.
The newly published finance Act requires multinational companies to disclose the amount of revenue, profit or loss before income tax, income tax paid, income tax accrued, stated capital, accumulated earnings, number of employees, and tangible assets other than cash or cash equivalents concerning each jurisdiction in which they operate.
The multinationals will also be required to provide their group’s aggregate information relating to revenue, profit or loss before income tax, income tax paid, income tax accrued, stated capital, accumulated earnings, number of employees and tangible assets other than cash or cash equivalents with regard to each jurisdiction where the group has a taxable presence.
Read also; Parliament Rejects Several Amendments in the Finance Act 2022.
