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Kenyan Digital Services Tax - from 1 January 2021

25 August 2020      Andrea Marshall, Tax Specialist

Thanks to Alison Ambrose from DT, who has provided the following information.

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I just wanted to alert you to the fact that the Kenyan tax authorities have now issued regulations that will introduce a 1.5% digital services tax (DST) from 1 January 2021.

 We understand from Deloitte Kenya that the scope of revenues that will be subject to the DST will be quite wide and therefore, similar to India, it is likely to impact any Universities providing online learning to candidates in Kenya. The regulations released state that the DST will apply to revenues from:

 streaming and downloadable services of digital content, including but not limited to movies, videos, music, applications, online games and e-books;

  • transmission of data collected about users which has been generated from such users' activities on a digital marketplace, however monetized;
  • provision of a digital marketplace, website or other online applications that link buyers and sellers;
  • subscription-based media, including news, magazines and journals;
  • electronic data management, including website hosting, online data warehousing, file-sharing and cloud storage services;
  • supply of search-engine and automated helpdesk services, including supply of customized search engine services;
  • tickets bought for live events, theatres, restaurants, etc. purchased through the Internet;
  • online distance teaching via pre-recorded medium or eLearning, including online courses; and
  • any other service provided or delivered through an online digital or electronic platform, excluding any service whose payment is subject to withholding tax.

 Please let us know if you or any of the Universities have any questions.

Tagged : Africa, International, Overseas Tax, Regions, Tax, Taxing Digital Services, VAT

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