The Kenya Revenue Authority (KRA) is seeking to collect Sh 5 billion in taxes from digital transactions within the next six months.
Commissioner general Githii Mburu, revealed that KRA would collect taxes from local and foreign businesses supplying a variety of online services in Kenya.
Firms operating online services are expected to pay tax at a flat rate of 1.5 percent on the value of goods or services supplied or sold online. The Digital Service Tax, 2020 is classified under the Income Tax bracket and takes effect in January 2021.
“We intend to use transaction tracers through data-driven detection in taxing multinationals as we roll out taxes on digital businesses,” Deputy Commissioner in charge of policy and domestic taxes, Caxton Masudi said in June.
The taxes were introduced through the 2020 Finance Act to tap the fast-growing technology sector and widen the taxman’s base.
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