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Global tech giants give KRA income tax avoidance headache
KRA says it is studying policy proposals from the Organisation for Economic Co-operation and Development (OECD) on how to tax the digital economy. PHOTO | FILE
Kenya Revenue Authority (KRA) is grappling with the difficulty of taxing global technology firms that have employees and earn income in the country, blaming outdated laws for failing to keep up with the growing digital economy. The taxman says only a few of the international tech giants with a local presence, like Google and Microsoft, are currently paying taxes in Kenya.
This has left most other multinationals such as Facebook, Uber, Amazon and Twitter out of the tax net despite earning significant income locally.