Kenya to impose new digital tax on tech companies

The Kenya Revenue Authority (KRA) has launched a call for comment on a proposed digital tax on income from services provided through the digital marketplace. The public has until 24 August to submit their comments to the Commissioner-General for review.  According to the Commissioner of Domestic Taxes at KRA, the digital service tax is intended to address the change in transactional models as well as expand the tax base. The digital tax will take effect on 1 January 2021, requiring individuals and businesses that earn income from services through the digital marketplace to pay a 1.5% tax on the gross transaction value.