On 7 August 2020, the Kenya Revenue Authority has published the proposed Income Tax (Digital Service Tax) Regulations, 2020 for consultation. To ensure wide circulation and public participation as stipulated in the Constitution of Kenya and the Statutory Instruments Act, 2013, Kenya Revenue Authority invites sector players, tax professionals and members of the public to submit their comments on the proposed regulations.
Digital service tax (DST) is introduced by the Finance Act 2020, which was enacted on 30 June 2020, including a DST rate of 1.5% on the gross transaction value of services provided in Kenya through a digital marketplace.
Once finalized, the regulations will come into effect on 1 January 2021. The deadline for comments is 24 August 2020.
