The Kenya Revenue Authority(KRA) is inviting sector players, tax professionals, and members of public to submit their comments on the proposed Digital Service Tax 2020.
The Digital Service Tax was recently proposed and seeks to enforce a 1.5% tax on ‘digital markeplaces’ that offer services delivered or subscribed over the internet or other electronic network.
SEE ALSO: Digital Marketplaces in Kenya to Start Paying 1.5% Digital Service Tax Beginning in 2021
In line with the above, crypto platforms and exchanges operating in Kenya are urged to submit their comments in regards to the digital tax which is expected to affect their service delivery in the country.
The new digital tax will require online businesses to charge and account for Value Added Tax for sales on their e-commerce platforms. It is charged on income derived from or accrued in Kenya from service offered through a digital market place.
The new tax is expected to affect foreign crypto platforms operating in Kenya that offer an online platform for buying and selling cryptocurrencies since they fall under ‘digital marketplace entity that accepts, authenticates, and processes payment transactions for merchants operating in the digital marketplace.’
The scope of taxable services as it relates to crypto platforms, includes the provision of a digital marketplace, website, or other online applications that link buyers and sellers.
There is no doubt that crypto and bitcoin platforms operating in Kenya fall under the above description and are thus eligible for the digital service tax.
Below are the details for comments submission:
- Email: [email protected]
- Deadline: 24th, August, 2020
- Contact: +254 711 099 999
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