Opinion: Glaring gaps in the new digital services tax law – Titus Mukora

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Business Daily | by Titus Mukora


There has been a lot of commentary in the media in respect of the newly introduced digital services tax. While the rationale for the introduction of the digital services taxes is understood generally, there appear to be some concerns on whether the law as passed achieves the objectives desired by the Kenya Revenue Authority (KRA).

The first issue is the scope of the digital services tax (DST) and what type of entities it applies to.

The Income Tax Act, the primary legislation, states that the digital services taxes will apply to a digital marketplace which in turn is defined in the same Act as a platform that enables the direct interaction between buyers and sellers of goods and services through electronic means….

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