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What will attract Digital Service Tax
Jan 14, 2021
Kenya Revenue Authority (KRA) has released a comprehensive list of digital services that will attract the 1.5 percent digital service tax that was introduced Digital Service Tax (DST) came into effect on January 1.
The digital tax, will affect subscription based media including online news and magazines subscriptions as well as online ticketing services.
From streaming services to Mobile apps, ebooks and films are some of the services that will attract the tax among other available digital content.
Others will include, provision of search engine services, chatbots, remote support, instant feedback services and customised search engine services.
KRA added that licensing, sales and other forms of monetizing data collected from Kenyan users, online training delivered through pre-recorded media or e-learning platforms and courses or any services provided through the digital marketplace, will attract the 1.5 percent tax.
On Monday, the taxman said they were targeting over 1,000 businesses and persons under the new digital taxes.
The authority said that it has posted high numbers of businesses and individuals seeking to register under the new tax bracket since its roll-out last week.
KRA did not, however disclose the number of registrations made so far under the digital taxes bracket but said that it anticipates to hit 100 new registrations from non-residents businesses and persons by end of this week.
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