Grace Ashiru
Kenya is looking to capitalize on the recent uptick in the value of Bitcoin, the most widely used cryptocurrency in the world, despite having been in a prolonged decline.
Kenya just put out new rules that say cryptocurrency platforms must pay a 1.5% tax on the commissions they get from the more than 4 million people in the country who trade in digital currencies.
The goal of the move is to stop multinational companies from avoiding taxes. It is also part of a larger plan to control and tax the cryptocurrency industry to protect people from the volatile crypto market and the risks of financial instability
Since there are few rules about cryptocurrencies in Kenya, it’s hard to figure out how much digital assets held by the most tech-savvy people are worth, but it could be billions of shillings.
The 1.5% digital service tax went into effect in January 2021. It is charged to foreign companies not registered in Kenya but offer services to Kenyans through a digital marketplace.
The sites that make it easy to buy and sell cryptocurrencies and other digital assets must pay tax according to the new rules. Bitcoins, data, pictures, videos, and written text are all digital assets.
