Kenya’s Digital Assets to be Taxed

Kenya is making plans to implement a 3% tax on digital assets revenue. According to the regulations in the Finance Bill 2023, proposed by the Kenya Revenue Authority, the new tax will affect the sale of digital assets, including cryptocurrencies and NFTs. The Bill requires platform owners or facilitators to deduct the tax and pay it to the Commissioner and unregistered digital asset exchanges in Kenya must register under the simplified tax system.

The proposed amendments also seek to increase the excise duty on telcos’ money transfer services from 12% to 15%, while the administration reportedly wants to reduce the excise duty on bank transfer fees from 20% to 15%, and decrease the cost of telephone and internet data by the same rate. Additionally, the KRA wants to impose daily excise duty remittance on companies that have a history of inflating actual sales through self-declaration. If approved, the KRA will have complete authority to require high-risk companies to pay daily taxes.

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