Kenya Finance Act 2022 Includes Revised Arm's Length Pricing Requirements for Preferential Tax Regimes, Revised CbC Reporting Requirements, and Several Other Changes

On 5 July 2022, the Kenya Revenue Authority published the Finance Act 2022, which was originally published in the Official Gazette on 23 June 2022 and contains the measures for the 2022/23 Budget. The main income tax measures are summarized as follows:

One of the main measures provides for the replacement of Section 18A of the Income Tax Act, which introduced an arm's length pricing requirement for resident related parties where one party is operating in a preferential tax regime. The new S…