DST, sometimes referred to as the digital service tax, was implemented in 2021.
According to the bill, a digital tax of 1.5 percent will be applied to the gross transaction value of digital services. It came into force in January 2021 and was levied against those who made money by selling goods and services on the internet.
The rule further stated that the tax would be accessible for Kenyans and non-residents with permanent establishments in the state to deduct from their income obligations for that year.
The Finance Act of 2022 states that some DST adjustments will take effect on July 1st. The rate of the digital service tax has been raised from 1.5 percent to 3 percent, in accordance with an amendment.
It appears that the government intends to generate more money from the online market. A 10% excise charge on imported phones was previously enacted and will take effect tomorrow. Following the implementation of an additional KES 50 for all SIM card transactions, customers who wish to acquire new SIM cards or replace their existing ones will also pay more.
Non-residents who get their revenue from the digital market but do not have a permanent establishment in the nation will be subject to the tax. On the other hand, a subsequent change on the bill also exempts non-residents from DST who have a permanent establishment in Kenya.
DST is thus only applicable to non-residents who do not have a permanent enterprise within the nation. As previously said, the president has already authorized the revised measures, so they will take effect as soon as possible.