KRA goes after Social Media influencers in new tax
Kenya Revenue Authority (KRA) has revealed that social media influencers are not exempted from paying the 1.5% Digital Tax.
President Uhuru Kenyatta in December 2020 signed into law the 2020-21 Budget, the 2020 Finance Bill that will see Kenyans pay tax for digital services.
Kenyan transacting business online that is goods sold on digital or social media platforms are liable to pay the 1.5% Digital services tax. According to KRA, the suppliers are required to declare the income earned under the self-assessment regime provided under the relevant Tax Laws.
KRA on Monday 18, 2020, announced that social media influencers will also pay the Digital Services Tax since they earn their income through the digital marketplace.
“Social media influencers will be liable to pay digital service tax since their income is derived from or accrued from the provision of services through a digital marketplace or by providing digital advertising services in Kenya.” Said KRA a Tweet.
According to a survey by GeoPoll top influencers in Kenya includes Comedian Jalang’o, Blessed Njugush, Erick Omondi, media personality Betty Kyallo among others.
Word has it that top influencers charge between Ksh 250,000 to Ksh 400,000 per campaign on a quarterly basis.