Your information is now accessible worldwide

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Image Credit | Tuko

Effective January 2021, Kenya can share and receive all your information to/from other tax administrations. This was after Kenya deposited its instrument of ratification for the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (the MAAC) with the Organization for Economic Co-operation and Development (OECD) on 22 July 2020. This action solidifies Kenya’s commitment to combat tax evasion and aggressive tax avoidance schemes.

The ratification of the Convention comes after Kenya became the 94th jurisdiction to sign and hence join the Convention network on 8 February 2016. Kenya also joins a list of at least 137 jurisdictions that have ratified, accepted or approved the Convention as of 22 July 2020.

The Convention is aimed at promoting international cooperation for the better operation of national tax laws while respecting the fundamental rights of taxpayers. It provides for various forms of administrative cooperation between states that are signatories to the MAAC. In particular, MAAC signatories can now benefit from:

a) Exchange of Information on request;
b) Automatic exchange of information,
c) Spontaneous exchange of information,
d) Simultaneous tax examinations;
e) Tax examination abroad; and
f) Assistance in recovery of tax and service of documents.

These actions help to counter international tax evasion, tax avoidance and other forms of noncompliance.


1. Kenya Revenue Authority (KRA) will have at its disposal taxpayer information that it previously would not have had access to. In addition, other signatories to the MAAC shall have access to information available in Kenya.

This information includes:

a) Ownership – shareholders, directors and beneficial owners
b) Financial information – audited accounts, segmented accounts, financial statements
c) Bank information – contractual information, contracts and agreements and
d) Tax Information – Returns, tax payments, tax exemptions.

2. Simultaneous Examinations: It shall be possible for multinational enterprises to be under audit in more than one jurisdiction at the same time; where the competent authorities shall share information obtained from the audits.

With the new requirements for beneficial ownership information and filing transfer pricing returns by Kenyan based ultimate parent entities, multinational enterprises are exposed in jurisdictions that they operate in.