Fie Blog

Read our latest insights & news from Africa
MNE

Kenya through its proposed Finance bill 2021, introduced documentation guidelines for Multinational Enterprises (MNEs) operating locally through their subsidiaries. This comes at a time when globally jurisdiction members under Organization for Economic Cooperation and Development (OECD) are racing to implement Inclusive framework on BEPS (Base Erosion and Profit Shifting) to combat illicit financial flows, tax...

TAX

Globally, countries especially across Middle East (Gulf countries) and Africa like Tunisia, Uganda and Egypt are racing towards implementing electronic tax invoice. The wave is already being felt locally with Kenya Revenue Authority (KRA) rolling out the hardware-based electronic tax invoicing which commenced on 1st August 2021; with a deadline for complying extended to 31st...

crypto

In the recent years, the global financial sector has experienced rapid development of new financial products and intermediaries such as Decentralized Finance (DeFi). This is in a bid to meet the varying needs for investors and consumers in different demographics; with countries racing to bridge the financial inclusion gap. Decentralized Finance (DeFi) is a fast-developing...

digital MNE

The digital economy has gained significant importance within the global economy as a driver of innovation and competitiveness. In Africa, Kenya has positioned itself as a leader in access to digital infrastructure; with 98% of its citizen owning sim cards, and 65% of the population having access to the internet. The high internet penetration in...

tax

In January 2022 the OECD (Organization for Economic Co-operation and Development) released a final version of the transfer pricing guidance on documentation and other important sections pertaining to transfer pricing. As per OECD 2022 guidance on documentation, it provides guidance for tax administrations to take into account in developing rules and/or procedures on documentation to...

Kenya

Dampened by the negative impacts of Covid-19, the Kenyan economy experienced a 3% contraction in 2020, from an annual growth of 5.8% in 2019.  However, in 2021, the economy rebounded and recorded a growth of 2%, 11.9% and 9.9% in the first, second and third quarters in 2021; with the fourth quarter estimated to grow...

thin cap

According to the Organization for Economic Co-operation and Development (OECD) thin capitalization refers to the situation in which a company is financed through a relatively high level of debt compared to equity. The Kenya Finance Act 2021 introduced new provisions governing interest payments that are not deductible for corporation tax purposes. The Act, provides for...

tax

The finance bill 2021 was tabled in National Assembly on 11th May and passed on 29th June 2021. The bill proposed the following amendments to the following statutes that took effect in 1st January 2022; Income Tax Extractive Industries Taxation: The Act grants an allowance of 50% in the first year of use of machinery...