Kenya
A tributação da economia digital na prática: Impostos sobre os serviços digitais e outras medidas
Por Natalia Quiñones, Anchal Khandelwal, Oluwole Olushola Oni, Maryam Maiyaki, Doris Malgwi, Ezekiel Swema, Nickson Omondi, Ivy Watti, Dinesh Thapa, Anne Wanyagathi Maina e Kolawole Omole
As empresas digitais continuam a crescer e a gerar receitas substanciais em jurisdições de mercado sem manter uma presença física. Baseiam-se principalmente em ativos intangíveis, dados de utilizadores e envolvimento dos utilizadores. As regras fiscais internacionais não acompanharam estes desenvolvimentos, deixando muitas jurisdições incapazes de tributar eficazmente a atividade económica digital. Em resposta, os países introduziram medidas nacionais, tais como os Impostos sobre Serviços Digitais (DST), as taxas de equalização e os impostos sobre a Presença Económica Significativa (SEP), continuando simultaneamente a envolver-se em esforços multilaterais. Este artigo examina a forma como os países implementaram tais medidas. O estudo aplica estudos de caso estruturados da Colômbia, Índia, Quénia, Nepal, Nigéria e Tanzânia. Analisa os quadros jurídicos, as práticas administrativas e os resultados em termos de receitas dos países, identificando simultaneamente características comuns e diferenças fundamentais nas abordagens de implementação. O artigo explora os fundamentos conceptuais e as justificações teóricas para tributar as receitas digitais na fonte, destacando as limitações das atuais regras de repartição de lucros que ignoram o papel do mercado. Com base nas experiências destes países, o estudo desenvolve um quadro de aprendizagem entre pares assente nas melhores práticas emergentes, reconhecendo simultaneamente os desafios da implementação. O estudo propõe, em seguida, vias para a harmonização das medidas fiscais digitais e delineia elementos essenciais de conceção para informar o desenvolvimento do protocolo preliminar sobre a tributação de serviços transfronteiriços (que inclui serviços digitais) ao abrigo da Convenção-Quadro das Nações Unidas sobre Cooperação Fiscal Internacional.
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La fiscalidad de la economía digital en la práctica: Impuestos sobre los servicios digitales y otras medidas
Por Natalia Quiñones, Anchal Khandelwal, Oluwole Olushola Oni, Maryam Maiyaki, Doris Malgwi, Ezekiel Swema, Nickson Omondi, Ivy Watti, Dinesh Thapa, Anne Wanyagathi Maina y Kolawole Omole
Las empresas digitales siguen creciendo y generando ingresos sustanciales en jurisdicciones de mercado sin mantener una presencia física. Dependen principalmente de los activos intangibles, los datos de usuarios y la interacción de los usuarios. Las normas fiscales internacionales no han seguido el ritmo de estos avances, lo que ha dejado a muchas jurisdicciones sin la capacidad de gravar eficazmente la actividad económica digital. En respuesta, varios países han introducido medidas nacionales, como los Impuestos sobre Servicios Digitales (ISD), los gravámenes de compensación y los impuestos sobre Presencia Económica Significativa (PES), al tiempo que continúan participando en iniciativas multilaterales. Este documento examina cómo los países han aplicado estas medidas. El estudio abarca casos prácticos estructurados de Colombia, India, Kenia, Nepal, Nigeria y Tanzania. Analiza los marcos jurídicos, las prácticas administrativas y los resultados en materia de recaudación de estos países, además de identificar características comunes y principales diferencias en los enfoques de implementación. El documento explora los fundamentos conceptuales y las justificaciones teóricas para gravar los ingresos digitales en el país de la fuentela fuente, destacando las limitaciones de las normas actuales de asignación de beneficios que pasan por alto el papel del mercado. A partir de las experiencias de estos países, el estudio desarrolla un marco de aprendizaje entre pares basado en las mejores prácticas emergentes, reconociendo al mismo tiempo los desafíos en la implementación. Finalmente, el estudio propone vías para armonizar las medidas fiscales digitales y describe los elementos esenciales de diseño que deben tenerse en cuenta en la elaboración del protocolo inicial sobre la fiscalidad de los servicios transfronterizos (incluidos los servicios digitales) en el marco de la Convención Marco de las Naciones Unidas sobre Cooperación Internacional en Materia Tributaria.
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La fiscalité de l’économie numérique en pratique : les taxes sur les services numériques et autres mesures
Par Natalia Quiñones, Anchal Khandelwal, Oluwole Olushola Oni, Maryam Maiyaki, Doris Malgwi, Ezekiel Swema, Nickson Omondi, Ivy Watti, Dinesh Thapa, Anne Wanyagathi Maina et Kolawole Omole
Les entreprises numériques continuent de se développer et de générer des revenus substantiels dans les juridictions du marché sans y maintenir de présence physique. Elles s’appuient principalement sur des actifs incorporels, les données des utilisateurs et leur engagement. Les règles fiscales internationales n’ont pas suivi le rythme de ces évolutions, laissant de nombreuses juridictions dans l’incapacité de taxer efficacement l’activité économique numérique. En réponse, certains pays ont mis en place des mesures nationales, telles que les taxes sur les services numériques (TSN), les prélèvements d’égalisation et les taxes sur la présence économique significative (SEP), tout en poursuivant leurs efforts multilatéraux. Le présent document examine la manière dont les pays ont mis en œuvre ces mesures. L’étude s’appuie sur des études de cas structurées portant sur la Colombie, l’Inde, le Kenya, le Népal, le Nigeria et la Tanzanie. Elle analyse les cadres juridiques, les pratiques administratives et les résultats en matière de recettes de ces pays, tout en identifiant les caractéristiques communes et les principales différences dans les approches de mise en œuvre. Le document explore les fondements conceptuels et les justifications théoriques de l’imposition des revenus numériques à la source, en soulignant les limites des règles actuelles de répartition des bénéfices qui négligent le rôle du marché. S’appuyant sur ces expériences nationales, l’étude élabore un cadre d’apprentissage par les pairs fondé sur les meilleures pratiques émergentes, tout en reconnaissant les défis liés à la mise en œuvre. L’étude propose ensuite des pistes pour harmoniser les mesures fiscales numériques et décrit les éléments de conception essentiels pour éclairer l’élaboration du premier protocole sur la fiscalité des services transfrontaliers (qui inclut les services numériques) dans le cadre de la Convention-cadre des Nations Unies sur la coopération fiscale internationale.
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The Taxation of the Digital Economy in Practice: Digital Services Taxes and Other Measures
By Natalia Quiñones, Anchal Khandelwal, Oluwole Olushola Oni, Maryam Maiyaki, Doris Malgwi, Ezekiel Swema, Nickson Omondi, Ivy Watti, Dinesh Thapa, Anne Wanyagathi Maina & Kolawole Omole
Digital businesses continue to grow and generate substantial revenue in market jurisdictions without maintaining a physical presence. They mainly rely on intangibles, user data and user engagement. International tax rules have not kept pace with these developments, leaving many jurisdictions unable to tax digital economic activity effectively. In response, countries have introduced national measures, such as Digital Services Taxes (DSTs), equalisation levies, and Significant Economic Presence (SEP) taxes, while continuing to engage in multilateral efforts. This paper examines how countries have implemented such measures. The study applies structured case studies of Colombia, India, Kenya, Nepal, Nigeria, and Tanzania. It analyzes the countries’ legal frameworks, administrative practices, and revenue outcomes, while also identifying shared features and key differences in implementation approaches. The paper explores the conceptual foundations and theoretical justifications for taxing digital revenues at source, highlighting the limitations of current profit allocation rules that overlook the role of the market. Drawing from these country experiences, the study develops a peer learning framework based on emerging best practices while recognizing the challenges in implementation. The study then proposes pathways for harmonizing digital tax measures and outlines essential design elements to inform the development of the early protocol on the taxation of cross border services (which includes digital services) under the United Nations Framework Convention on International Tax Cooperation.
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The Implications of Treaty Restrictions of Taxing Rights on Services, Especially for Developing Countries
By Faith Amaro, Veronica Grondona, Sol Picciotto
Taxation of cross-border services has been identified as a high priority issue in the United Nations (UN) negotiations to establish a new global framework for tax. This paper analyses the defects of international tax rules as applied to services, and their exploitation by multinational enterprises (MNEs), focusing on the impact on developing countries. Services have become increasingly important for economic development, but international tax rules favouring delivery by non-residents act as a disincentive to the growth of local services providers, particularly disadvantaging developing countries which are mainly hosts to MNEs. We analyse the restrictions on source taxation of services in tax treaties, particularly those based on the model of the Organisation of Economic Co-operation and Development (OECD), and show that their spread has been accompanied by a widening deficit in services trade of developing countries, while the weakening of their attempts to protect their tax base through withholding taxes has resulted in increasing losses of tax revenue. The paper combines detailed qualitative analyses of tax treaties with quantitative estimates of their effects on trade and tax revenues for services of five developing countries: Argentina, Brazil, Colombia, Kenya and Nigeria. Our analysis suggests that a new approach is needed for taxation of services, breaking with the residence-source dichotomy, and adopting formulary apportionment. This could be based on the standards agreed in the Two Pillar Solution of the OECD/Group of Twenty (G20) project on base erosion and profit shifting (BEPS) and developed now through the UN.
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Left on Our Own: COVID-19, TRIPS-Plus Free Trade Agreements, and the Doha Declaration on TRIPS and Public Health
By Melissa Omino and Joanna Kahumbu
The cusp of the twentieth anniversary of the WTO Doha Declaration on the TRIPS Agreement and Public Health (hereafter “the Declaration”) was marked by a global pandemic. The Declaration and its iteration in the Agreement on Trade Related Aspects of Intellectual Property Rights (hereafter “TRIPS”) Article 31 bis, should have helped to contain the devastation in least developed and developing countries. The reality is that the pandemic is still ongoing, and the Global South led by South Africa and India are seeking a waiver of provisions to the TRIPS Agreement to ensure that COVID-19 therapeutics, diagnostics, and vaccines reach their citizens in order to contain the spread of the COVID-19 virus (“the TRIPS waiver”). These citizens are especially vulnerable because of their inability to access vaccines due to their prices and supply shortages caused by the refusal to share manufacturing technology. The Doha Declaration aimed at reaffirming the interpretation and implementation of the TRIPS Agreement to support WTO members’ right to protect public health and promote access to medicines. However, the operationalization of the Declaration via Article 31bis of TRIPS has been cumbersome and procedurally difficult to navigate. This paper argues that the current iteration of the Doha Declaration within TRIPS fails to meet the objectives of the Declaration as demonstrated by the need for a further waiver of the TRIPS agreement. It also attempts to “reimagine” Article 31 bis in light of the TRIPS waiver from the position of the Global South to make it more equitable and practicable and maintain the spirit of the Declaration.
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The Right to Health in Pharmaceutical Patent Disputes
by Emmanuel Kolawole Oke
This paper examines how the courts in three developing countries (Kenya, South Africa, and India) have addressed the tension between patent rights on pharmaceutical products and the right to health. The paper begins by examining the nature of the relationship between patent rights and the right to health. It thereafter explores the justiciability of the right to health in Kenya, South Africa, and India. Furthermore, the paper provides an analysis of how the courts in these three developing countries have adjudicated some of the pharmaceutical patent cases involving tensions between the right to health and patent rights. The paper contends that by incorporating the right to health into the adjudication of patent disputes, courts in developing countries can play a crucial role in improving access to medicines at affordable prices.
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First African Fiscal Policy Forum
Inequalities in Taxing Rights
Thursday, 16 December 2021, 02:00 PM (South African Standard Time), Virtual Meeting
The Coalition for Dialogue on Africa (CODA) and the South Centre, together with other key stakeholders are co-organizing a series of dialogues to discuss and address the issues related to stemming IFFs from Africa.
The main objective of this dialogue series is to bring together key stakeholders to discuss the current global processes towards combatting IFFs, re-allocation of taxing rights, the role of African regional institutions, the importance and place of Africa’s voice and representation in these processes.
The dialogue series will examine the legitimacy of these processes, including the nature of Africa’s representation in the global conversations and the outcome of the processes with respect to Africa’s interest.
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Malaria and Dengue: Understanding two infectious diseases affecting developing countries and their link to climate change
By Mirza Alas
Developing countries will face more complex challenges as infectious disease patterns transform due to climate change and climate variability. These challenges include how to reduce the incidence of malaria (including the significant challenge of resistant malaria), dengue, and other vector-borne and water-borne diseases that are likely to experience alterations in geographical range and lengthening of the transmission seasons due to changing temperatures and rain patterns. Climate extremes, e.g., heat and floods, are implicating the spread of climate-sensitive infectious diseases such as dengue and malaria transmitted by vectors like mosquitoes. In the context of growing financial pressure on governments due to COVID-19, the ensuing fiscal challenges may severely limit the capacity to effectively respond to health challenges in countries already affected by malaria and dengue. Other countries that have made gains in controlling vector-borne infections could also be vulnerable to rising disease burden. This research paper aims to analyze how changes in malaria and dengue pose a challenge for developing countries as they prepare mitigation and adaptation strategies for climate health. The paper will also provide some general recommendations on the importance of integration of health in national climate change strategies.
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