Treasury has introduced the digital services tax on income accrued in Kenya. [Reuters]Global tech giants Facebook, Microsoft and Google’s parent company Alphabet Inc are avoiding paying as much as Sh280 billion in tax revenue to 20 developing countries, including Kenya. In July, the National Treasury through the Finance Act 2020 introduced the digital services tax, payable on income accrued in Kenya from services offered through a digital market place. Treasury has also through the VAT (Digital Marketplace Supply) Regulations 2020, proposed a new VAT levy on digital products and services. “VAT shall be charged on taxable services supplied in Kenya through the digital market place,” explains the regulations in part.

Source: Standard Digital October 27, 2020 10:52 UTC