The Kenya Revenue Authority (KRA) has introduced a Digital Service Tax (DST). This new tax which will officially begin on the 1st of January 2021 according to the Finance Act of 2020, is aimed at all businesses that operate in the digital market sector.
Digital Service Tax (DST), is 1.5 percent of the total transaction value and will be due at the time of transfer of payment for the service or goods made available the provider or business.
With the Digital Service Tax (DST) all businesses with operations in the digital sector will pay the tax on all income derived from services that they offer via digital platforms in the country.
Companies that operate electronic online platforms which connect them to various markets for goods and services, are also included and will pay Digital Service Tax (DST).
The Kenya Revenue Authority (KRA) will also be celebrating Taxpayers Month which also coincides with the establishment’s 25th Anniversary.
According to the Kenya Revenue Authority (KRA)’s Deputy Commissioner in charge of Marketing and Communication; Grace Wandera, “This year’s Taxpayers Month is themed “Enhancing tax administration for economic sustainability”. The celebrations are special as KRA is also marking its Twenty Fifth (25th) Anniversary since the Authority was organised.”
The Taxpayers Month will also have a Taxpayers Award Ceremony. It will be graced on the 6th of November 2020 by His Excellency President Uhuru Kenyatta.
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