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Dilemma for multinationals as KRA goes for service export tax

Several multinational firms without subsidiaries in Kenya face uncertain times following a High Court decision that allows the Kenya Revenue Authority (KRA) to impose levies on exported services.

The courts had for about two years between 2018 and 2020 severally ruled in favour of these companies, noting that the services rendered on their behalf by their marketing departments in Kenya were not subject to the 16 percent value-added tax (VAT), which is a sales tax on goods and services sold in the country.

Source: Nation.Africa

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