The Coming Into Force Of CRS In Kenya

Introduction

Kenya is stepping up its efforts to join global tax transparent jurisdictions in connection with the exchange of information on foreign accounts for tax purposes. On 5 December, 2019, Kenya ratified the Convention on Mutual Administrative Assistance in Tax Matters (the Convention) which had been signed on 8 February, 2016. By 27 November 2019, 135 countries had signed the Convention, including most of the off-shore jurisdictions.

Kenya is expected to imminently sign the Common Reporting Standards Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information (the CRS Agreement). The Common Reporting Standards (CRS) set out the rules governing the automatic exchange of financial account information in tax matters developed by the OECD to tackle tax evasion and improve tax transparency and compliance.