Google warns of risk in Kenya's digital tax push

Online business likely to be slapped with an income tax. FILE PHOTO | NMG

American technology giant Google has warned that Kenya risks trade wars with other countries if it imposes tax on digital transactions.

The Government has proposed review to law through the Finance Bill 2019 that will see online business slapped with an income tax. The multinational told Members of Parliament the amendments are contrary to the international tax system that requires companies to pay the bulk of their corporate tax in the countries where their products and services are created as opposed to where they are consumed.

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