FILE PHOTO | NMG
Global online firms generating cash in Kenya’s cyberspace will start paying taxes in the next six months if Parliament enacts the Finance Bill, 2020 into law.
The Bill, slotted for debate on Tuesday establishes a digital service tax payable by both foreign and local entities that derive income in Kenya through a digital market place.
Firms are supposed to offset the digital service tax paid against the tax payable for that year of income.
“Notwithstanding any other provision of this Act, a tax to be known as the digital service tax shall be payable by a person whose income from the provision of services is derived from or accrues in Kenya through a digital market place.”
The proposed law has not defined the threshold of what constitutes the amount of tax payable under digital services but stipulates that payment made under the new tax shall be due at the time of the transfer for the service to the providers.
