KRA Introduces Disclosure Obligations For Related Party Transactions

In a recently published Public Notice (the Notice), the Kenya Revenue Authority (KRA) has enhanced the Income Tax Company Return (the Return) on the iTax platform to provide for the declaration of related party transactions by persons with related parties and whose ascertainment of gains or profits from a business is subject to the provisions of Section 18 or Section 18A of the Income Tax Act Cap 470 Laws of Kenya (the ITA).

The Notice requires that the taxpayer answers affirmatively to the question in the basic information sheet of the Return and indicate whether they have related parties outside Kenya or controlled transactions. After that, the taxpayer is expected to provide the relevant details of these related party transactions under the designated sheet "B2_Related_party_transaction" in the Return.