The government of Kenya has finally passed a law to tax digital content creators like YouTubers, Tik-tokers, bloggers and others who make money from their content and from activities as brand influencers.
The government seem to have gotten wind of how much content creators are making from their social media platforms and from brand sponsorships. Now they want a piece of that cake.
But the target of the law is not just influencers. Affiliate marketers, photographers, musicians, skitmakers, bloggers—anyone who creates any kind of content and posts them on any platform and makes money from it.
The bill originally proposed a 15% tax, but digital creators kicked against it and the Kenyan National Assembly reduced it to 1.5%.
So, from July 1, anyone who wants to pay a content creator is required by law to withhold 1.5% of the payment and remit it to the government.
- https://memoriesnews.com/samsung-others-violate-regulations-in-kenya/
- https://memoriesnews.com/kenya-president-ruto-enacts-new-finance-bill/
Digital loans and assets
Meanwhile, digital loans in Kenya are about to get more expensive as the new law now includes any charges on loans and lending transactions.
The new law is also mandating a 3% tax on any digital asset being transferred or exchanged. It is called a Digital Asset Tax (DAT).
Ironically, this news is coming just three weeks after the outgoing Kenya Central Bank governor, Patrick Njoroge, reiterated the apex bank’s anti-crypto stance.
This development is similar to Nigeria amending its 2022 Finance Act to include a 10% tax on profits on digital assets.
SOURCE: techfocus24.com