The Kenya Revenue Authority (KRA) has sent an invitation to the public for comments by 15 June on plans to introduce taxes on downloadable digital material including e-books, films and mobile applications. Relevant taxable supplies made through a digital marketplace will include electronic services such as news, magazines, journals, video and music streaming, podcasts and online gaming.
The proposal states that a digital market place supply will be deemed to have been made in Kenya if the recipient of the supply is in Kenya, the payment proxy including credit card information and bank account details of the recipient of the digital supplies is in Kenya, or the residence proxy including the billing or home address or access proxy including internet proxy address, mobile country code of SIM card of the recipient, is in Kenya.
KRA says the measure is to offset some of the losses caused by Covid-19. If it is adopted, internet access will in some ways become more expensive. To ensure wide consultation and public participation, the KRA said it is inviting sector players, tax professionals and members of the public to submit their comments on the draft regulations before 15 June.
