The newly introduced digital service tax(DST) could now only be payable by non-resident persons doing online sales to Kenyans if the finance bill 2021 comes into action. According to BDO Global, an accounting and advisory network this proposal responds to the difficulty in collecting DST and the international developments on digital service taxes. The growth of online services in the country saw KRA introduce the tax head to collect revenue from the digital marketplace. PwC noted that taxpayers were grappling with the widening of the scope of digital service tax to include all services provided through a digital platform without regard as to whether the digital platform qualifies as a digital marketplace in line with the definition provided in the primary legislation. The PwC tax experts urged the tax policymakers to make the necessary amendments to ensure that the digital service tax is easily adopted with minimal adverse impact to businesses, given the challenges currently facing taxpayers.

Source: The Star May 17, 2021 05:48 UTC