NAIROBI, Jan. 10 (Xinhua) — Kenya has ratified the Organization for Economic Cooperation and Development (OECD)’s multilateral convention on base erosion and profit shifting, which seeks to curb international tax evasion.
In a statement issued Wednesday evening, the OECD, a global policy forum that promotes policies to improve the economic and social well-being of people worldwide, said that Kenya’s ratification of the treaty highlights its strong commitment to preventing the abuse of tax treaties by profit-shifting multinational enterprises.
“As of today, 88 jurisdictions have either ratified, accepted, or approved the convention resulting in the modification of over 1,600 treaties. Around 350 additional treaties will be modified once the convention has been ratified by all signatories,” the OECD said.
Set to take effect on May 1, the convention serves as a key instrument for updating bilateral tax agreements and minimizing opportunities for tax avoidance by multinational corporations. It also addresses treaty abuse and provides mechanisms for resolving tax disputes, the OECD added.
Kenya is home to many global corporations across sectors such as telecommunications, finance, construction, and manufacturing.
