Digital corporations urged to set up offices in Kenya

The Kenya Revenue Authority should create structures that will facilitate the collection of tax from multi-national digital corporations, says tax experts.

Pan African tax experts want the government to encourage digital companies to set up offices in Kenya for easier taxation and to level the playing field for local companies who pay taxes.

Globally, the e-commerce was valued at 29 trillion US dollars in 2017 with Twitter, Snapchat, Google, Facebook and Amazon leading in revenue generations.

Despite e-commerce companies operating in Kenya and the East African region, they did not pay tax to authorities.

To this end, the government has been urged to encourage digital companies to set up offices in Kenya to make it easier for tax collection.

According to Pan African tax experts the multinationals have edged out local business from the market despite not paying taxes, hence the need to level the playing field.

Experts say KRA should modernize tax structures to help in collecting taxes from dynamic digital companies.

African nations have been urged to approach negotiations on tax as a bloc since the current digital tax rules favour developed nations.

  

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