PHOTO CREDITS: Citizen Digital
By
Everlyn Muendo and Leonard Wanyama
Considering the ongoing effects of COVID-19 pandemic, this year’s Finance Bill 2021 for the budget of FY2021/22 is undergoing a great deal of scrutiny.
This is because the public is keen to know how these proposals will affect the common citizen, Wanjiku, as well as the budget’s impact on small businesses. The Finance Bill 2021 has introduced several progressive tax measures that are in line with international standards.
These measures aim to reduce the tax avoidance activities of multinational companies which have been estimated to cost Kenya USD565.8 million as reported in the recent Tax Justice Network (TJN) study on the State of Tax Justice.
Significantly, these tax measures include the introduction of a new definition of permanent establishments, that is, rules determining creation of a fixed place of business for foreign companies.
