Kenya: Government announces new draft income tax transfer pricing rules 2023 for consideration

published on 8 September 2023 | reading time approx. 1 minute

Through the public notice dated 5 September 2023, the commissioner general of the revenue authority has invited the public, professionals and stakeholders to submit their input for consideration to be included in the final regulations as part of public participation requirements.

Some of the notable proposals in the draft rules include the expansion of the scope of the transfer pricing rules to now cover the following:

insurance and re-insurance services
business restructuring or re-organization
cost contribution arrangements
Ttansactions involving derivatives

Other amendments include:

A proposal to widen the power of the commissioner of revenue to request for information and documentation from persons or companies relating to transfer pricing.
The inclusion of certain provisions of the tax procedures law relating to fraud, failure to furnish returns and tax underpayments as part of the transfer pricing rules amongst other proposals.

The public has until 22 September 2023 to submit their input with respect to the proposed draft rules.