The Kenyan Revenue Authority (KRA) has said that it has worked out new guidelines that will be used to check the activities of crypto traders across the country.
With that view, the country has said that it would henceforth start charging a 1.5% gross transaction as the new Kenya digital tax fee.
Users of digital assets can still breathe with relief as the new guidelines will take effect from the beginning of next year. According to a report submitted, the KRA will organize a particular unit that will use a data-driven detection technique to monitor and tax transactions across the country.
New tax law to be levied on users of the digital space
Even though the report gave a full analysis of the mode of tracking the taxable transactions, it failed to state those activities that would be monitored and those that would pay the tax.
According to the laws in Kenya, whenever goods and services directly exchange hands via a digital means, it is termed a digital marketplace.
The report confirms that the crypto community and firms that carry out crypto services would be included as they fall under the digital market place. Kenya has been witnessing considerable growth in the adoption of Bitcoin and other assets for the past few months.
Kenya presently does not possess a framework that checks the activities of crypto across the country.
Bitcoinke founder says new Kenya digital tax law is not clear enough
According to reports, the KRA has been asking the country’s Central Bank to start recognizing digital assets to levy the Kenya digital tax on the users.
Bitcoinke founder David Gitonga faults the guidelines as not being clear enough but affirms that the move will push for the establishment of crypto regulations across the country.
Talking to reporters, Gitonga said this new guideline will bring many crypto or crypto-related activities into the light and help the country determine the basis of some crypto regulations.
Gitonga opined that the government is not aware of the vastness of the digital space in Kenya; consequently, there is no crypto law. Presently, Kenya is in the top five of countries that carry out most trade in Bitcoin across Africa. With this new Kenya digital tax, it is unclear if a big blow will be dealt to crypto adoption.