KRA blocked from taxing pay of Safaricom staff seconded to Ethiopia

Safaricom

A Pedestrian walking past Safaricom Shop along Kenyatta Avenue in Nairobi on May 7, 2023. The Tax Appeal Tribunal has barred the Kenya Revenue Authority (KRA) from taxing the salaries of Safaricom employees seconded to the telco’s subsidiary in Ethiopia. 

Photo credit: File | Nation

The Tax Appeal Tribunal has barred the Kenya Revenue Authority (KRA) from taxing the salaries of Safaricom employees seconded to the telco’s subsidiary in Ethiopia.

The tribunal set aside the KRA’s assessment of Sh436,056,888 against the telecommunications firm while agreeing with the telco’s submission that the seconded employees were under the obligation of Safaricom Telecommunications Ethiopia PLC (STEP) and had already paid the taxes to the Ethiopian government.

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Note: The results are not exact but very close to the actual.