Multinational Enterprise Groups (MNEs) operating in Kenya, with a combined annual turnover of 95 billion Kenya shillings (c. USD 800 million) are required to file the following for the year of income 2022 and subsequent years:
- A Notification Form to the commissioner not later than the last day of the reporting fiscal year of the MNE. The Notification form (Form CBCN1) is accessible from the KRA website and should be filed through [email protected];
- The Master File and Local File not be later than 6 months after the last day of the reporting fiscal year of the MNE; and
- A country-by-country (CbC) report not later than 12 months after the last day of the reporting fiscal year of the MNE.
Where there are more than one constituent entities of the same MNE in Kenya, the MNE may designate one of such entities as a surrogate parent entity for purposes of filing the above documents.
A MNE is not required to file the CbC report with the Commissioner in Kenya if:
- The ultimate parent entity (UPE) is obligated to file a CbC report in its jurisdiction of tax residence;
- The UPE’s jurisdiction has an international agreement and a competent authority agreement in force; and
- The Commissioner has not notified the resident constituent entity in Kenya of a systemic failure.