KRA To Collect Tax From Google, Netflix And Other Online Businesses Come January 2020

August 6, 2020

Kenya Revenue Authority (KRA) has announced its new Digital Service Tax (DST) which will come into effect next year January.

The DST set at 1.5% of the gross transaction value is targeting returns from technology companies and individuals who market or sell their products and services online.

It is said a special unit has been tasked with tracking revenues from digital enterprises. This is to facilitate tax payment from past unmanaged sectors as a measure to boost revenue collection.

“We intend to use transaction tracers through data-driven detection in taxing multinationals as we roll out taxes on digital businesses,” said Deputy Commissioner in charge of policy and domestic taxes.

KRA is also targeting Kenyans who shop their goods and services online in line with the published draft Value Added Tax (DSM) Regulations 2020.

The taxable digital content includes downloadable products such as movies, applications, e-books, streaming of TV shows and musics, podcasts, online gaming among many others.