In Kenya, the world of transfer pricing (TP) rules has recently witnessed some exciting developments.

Thanks to the Finance Act 2022, companies engaging in transactions with related parties or entities in preferential tax regimes now have a new set of guidelines to follow. These guidelines not only broaden the scope of transactions subject to pricing legislation but also introduce specific definitions and documentation requirements, following the globally recognized OECD TP documentation model.

But that's not all - the regulations also feature country-by-country (CbC) reporting requirements, exemptions, and penalties for non-compliance, aligning with wider tax procedures. In this dynamic landscape, taxpayers have the freedom to conduct economic analysis to demonstrate arm’s length results and operate under a self-assessment regime.

While Advancing Pricing Agreements may not be available, the law allows for private rulings and utilization of the Mutual Agreement Procedure (). Understanding and abiding by these regulations is crucial for companies operating in Kenya, ensuring they not only comply with transfer pricing laws but also mitigate associated risks. It's an ever-evolving world, and staying abreast of these changes ensures a smooth sail through the choppy waters of transfer pricing in Kenya!

Download the full Grant Thornton Africa Transfer Pricing Landscape Guide 2023/2024. This guide offers in-depth information and valuable insights into transfer pricing across various African countries, providing a comprehensive resource for understanding the evolving transfer pricing environment in the region.