• The Kenyan government is reportedly considering new tax measures affecting cryptocurrency transactions, online advertisement, and non-fungible token (NFT) transfers.
• These digital assets will be taxed with a 3% capital gains tax on profits made from trading.
• Additionally, a 15% tax will be imposed on influencers’ income generated through various social media platforms.
Kenya Introduces Tax Measures Affecting Cryptocurrency Transactions and Non-Fungible Token Transfers
The Kenyan government is reportedly looking to introduce new tax measures that would affect cryptocurrency transactions, online advertisement and non-fungible token (NFT) transfers. As part of their efforts to secure additional revenue streams to finance the budget, they are proposing taxes on these industries.
Cryptocurrency Trading Taxed with 3% Capital Gains Tax
To regulate the sector and ensure cryptocurrency traders contribute to the country’s tax revenue, lawmakers are proposing a 3% capital gains tax on profits made from trading cryptocurrencies such as Bitcoin, Ethereum and others. Additionally, a similar percentage rate of 3% would be applied for transfers of NFTs which represent ownership of unique artwork, music and videos.
15% Tax On Online Influencers Income
The proposed bill also includes an initiative to levy a 15% tax on income earned by influencers through various social media platforms such as affiliate marketing, sponsorships, paid subscriptions or merchandise sales. This move intends to apply taxes to one of the most powerful forces in advertising today — online influencers — who have seen tremendous success in gaining public attention over the past few years.
Government Yet To Pass Bill Into Law
The legislators have yet to pass this bill into law as it has several assessment sessions it must go through first including five reading rounds, reports and committees by the National Assembly before finally moving onto the president’s desk for final review and consideration.
Public Reactions On Proposed Taxes
Several reactions were drawn from individuals regarding this proposed move by legislators ranging from noting that taxing digital assets at 3 percent was absurdly low while some others questioned if it applies even for credit card payments.