This archive report was first published on 9 July 2020.
Published on July 9, 2020, a report by the Organisation for Economic Co-operation and Development (OECD) highlighted Kenya's tax reform efforts as a notable achievement in the global arena.
The report, Corporate Tax Statistics (second edition), analyzed the tax and economic activities of nearly 4,000 multinational enterprises (MNE) groups headquartered in 26 jurisdictions and operating across more than 100 jurisdictions worldwide.
Of the 74 jurisdictions covered in the analysis, 57 provided accelerated depreciation, resulting in Effective Average Tax Rates (EATRs) below their statutory tax rates.
Kenya, alongside Italy, Papua New Guinea, and Cote D'Ivoire, was singled out for its generous accelerated depreciation corporate tax policy.
According to the report, the largest reductions in statutory tax rates were observed in Italy (4.9 percentage points), Kenya (3.8 percentage points), Papua New Guinea (3.7 percentage points), and Cote d'Ivoire (3.4 percentage points).
Kenya Revenue Authority (KRA) Commissioner-General Githii Mburu acknowledged the country's progress in corporate tax reform, stating that further engagements and reform initiatives were underway to tackle Base Erosion and Profit Sharing (BEPS).
Kenya's tax policy allowing for the expensing of intangible assets was also noted as an innovative development, providing a welcome dashboard for global benchmarking against standards such as the BEPS Action plan.
