BUSINESS
Multinational companies operating in Kenya will now have to provide the Kenya Revenue Authority (KRA) with income statements of their operations in the country and other jurisdictions.
This is according to proposed amendments to the Income Tax Act contained in the Finance Bill, 2021. The law change seeks to cut revenue losses due to transfer pricing, where multinationals shift their operating costs and profits to countries with lower tax rates.
“An ultimate parent entity of a multinational enterprise group shall submit to the commissioner a return describing the group’s financial activities in Kenya, where its gross turnover exceeds the prescribed threshold, and in all other jurisdictions where the group has taxable presence, not later than 12 months after the last day of the reporting financial year of the group,” proposes the amendment to Section 18 of the Income Tax Act.
B Investments announced it has entered into an agreement to sell 20% of its stake in Total Egypt to Total Outre-Mer for a total consideration of approximately EGP 146 million, in accordance with the exit terms pre-agreed with Total at the time of B Investments Holding investment in Total Egypt.
Following the completion of this transaction, B Investments’ stake in Total Egypt will drop from 7.97% to reach 6.38%.
Hazem Barakat, Co-founder & Chairman of B Investments said: “This transaction marks an important milestone for B Investments. We are very pleased to have been a part of Total Egypt’s growth story and we look forward to continuing our fruitful partnership with Total.”