Kenya eyes more revenues from oil, gas explorers under proposed rules
Saturday June 1 2013
The Ngamia 1 site in Turkana where British firm Tullow struck oil. Photo|FILE NATION MEDIA GROUP
Draft regulations prepared by two consultants hired by the government and the World Bank propose a change in the profit-sharing formula and introduce capital gains tax as part of the conditions explorers will commit to before they are licensed to operate in the country.
This will see companies pay taxes if involved in share transactions between non-Kenyan entities.
Also proposed are tough transfer-pricing rules to seal tax avoidance loopholes. These will also prevent double taxation that could scare away investors. Currently, Kenya has a broad transfer-pricing regime with no specifics on the oil and gas sector.