- Economic Cooperation and Development (OECD) recently hosted the talks on the overhaul of taxation rules.
- US have been pushing for a global minimum rate of tax on multinational companies.
- But quite a few African countries are missing from the list.
Economic Cooperation and Development (OECD) recently hosted the talks on the overhaul of taxation rules .US has been pushing for a global minimum rate of tax on multinational companies. Almost 132 countries backed the agreement. But quite a few African countries are missing from the list. Kenya, Nigeria and Algeria are among the African economies that have withheld their support though it was favoured by countries like Egypt, South Africa and Morocco. According to reports, Kenya declined to support the deal due to a clause that demands countries scrap the digital services taxes. That will force it to let go of the digital services tax of 1.5 percent of sales by US tech giants such as Google, Facebook and Amazon and its own digital services tax, which came into force in January. The tax levied on the sale of e-books, movies, music, games and other digital content etc. could generate up to Sh13.9 billion in revenue in the next three years said the Kenya Revenue Authority (KRA). The tax standoff comes over when Kenya – US free trade deal is already facing new challenges
