Editorial Desk 
- Advancing Tax Transparency:KRA Staff Equipped for Global Compliance;
Kenya has taken significant strides in aligning with global tax transparency efforts, and Kenya Revenue Authority (KRA) is at the forefront of these initiatives. A recent milestone in this journey is the successful completion of the Exchange of Information System (EOIS) User Training for KRA staff, which is a critical step in enhancing tax transparency and compliance in Kenya.
The EOIS training is more than just a skill-building exercise; it is a strategic move towards ensuring that KRA staff are well-equipped to utilize the EOIS platform effectively. This platform is central to secure and efficient information exchange with other jurisdictions, a crucial element in the fight against tax evasion.
Kenya’s commitment to global tax transparency is further demonstrated through the introduction of the Common Reporting Standard (CRS) and the Country-by-Country Reporting (CbCR) Standard, both of which were embedded in the Finance Act 2021. The CRS regime, effective from July 2021, mandates all financial institutions in Kenya to report financial information for tax purposes.
Similarly, the CbCR regime, effective in 2022, requires multinational enterprise groups operating in Kenya to disclose their operations transparently. Both regimes are facilitated through the automatic exchange of information, marking a significant leap in Kenya’s efforts to combat tax evasion.
Kenya’s participation in the global Exchange of Information (EOI) framework is further solidified by the country’s signing of the Multilateral Competent Authority Agreements (MCAAs) on the Automatic Exchange of Financial Account Information (July 2021) and the Automatic Exchange of Country-by-Country Reports (September 2022).
These agreements are grounded in the Convention on Mutual Administrative Assistance in Tax Matters, which provides a standardized mechanism for the automatic exchange of information between signatory countries.
KRA’s proactive approach in training its staff on the EOIS platform underscores Kenya’s commitment to fostering a culture of compliance and transparency.
As the country continues to integrate global tax standards, KRA remains a pivotal player in ensuring that these standards are met, thereby reinforcing Kenya’s role in the global tax compliance landscape.
The skills and knowledge gained by KRA staff during the EOIS training will be instrumental in driving Kenya’s ongoing efforts to enhance tax transparency and uphold international tax compliance standards.
