Why Kenya declined the new minimum global tax system
On October 8, 2021, member countries of the Organization for Economic Cooperation (OCED) agreed to a 15% minimum tax rate on multinational corporations with more than twenty billion euros in revenue and a 10% profit margin. Out of the 140 countries, four were conspicuously missing from the list of collaborators, among them Nigeria, Pakistan, Sri Lanka, and Kenya.
Simon Rick 
On October 8, 2021, member countries of the Organization for Economic Cooperation (OCED) agreed to a 15% minimum tax rate on multinational corporations with more than twenty billion euros in revenue and a 10% profit margin. Out of the 140 countries, four were conspicuously missing from the list of collaborators, among them Nigeria, Pakistan, Sri Lanka, and Kenya. According to a commissioner with the Kenya Revenue Authority, Terra Saidimu, the country is still evaluating the cost-benefit of the recommended global tax system, before it can make a decision. The tax system adversely affects Kenya’s tax revenue from digital services.
Source: Quartz Africa
The newly implemented Digital Services Tax established earlier in the year is the main cause of uneasiness with Kenya. The 1.5 percent tax on digital services is especially levied on tech mammoths such as Facebook, Google, and Amazon. According to the KRA, the new tax infrastructure has helped curb tax avoidance by multinational companies. The tax applied to e-commerce services such as sales of e-books, music, movies, games, and a variety of digital products is beneficial to the country as the KRA estimates it has the potential to create more than thirteen billion shillings in tax revenue in the coming three years.
Source: JANAR
