Tax Alert: Place of Effective Management

Place of Effective Management

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Tax Appeals Tribunal (TAT) rendered judgement in the case of M-Kopa LLCC/O M-Kopa Kenya Limited versus Commissioner of Domestic Taxes about the determination of the place of effective management (POEM) for taxation purposes. 

This judgement by TAT has reiterated and offered clarity on what is place of effective management (POEM) for purposes of determining if an entity is a tax resident in Kenya. It demonstrates that determination of place management is relevant for tax purposes especially in a case where a company has offshore subsidiaries.

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