Kenya Imposes 3% Tax on Crypto Trading Profits
• The Kenyan government is considering new tax measures for cryptocurrency transactions, online advertisement, and non-fungible token (NFT) transfers.
• These taxes would include a 3% capital gains tax on profits made from cryptocurrency trading and a 15% tax on income generated by influencers through social media platforms.
• It will have to go through different assessment sessions before it becomes law.
Kenyan Government Considering Tax Measures On Cryptocurrency
The Kenyan government is reportedly considering new tax measures affecting cryptocurrency transactions, online advertisement, and non-fungible token (NFT) transfers. According to reports, the government is looking for new revenue streams to help finance its budget and is considering taxing these industries.
Taxes On Digital Assets
Kenya Enacts Bill On Crypto Taxes The country’s lawmakers aim to impose a capital gains tax on profits made from cryptocurrency trading. As such, they will place a 3% tax on digital assets. This move attempts to regulate the sector and ensure cryptocurrency traders contribute to the country’s tax revenue. The lawmakers are also considering imposing a tax on the transfer of NFTs. These digital assets represent ownership of unique artwork, music, and videos. According to them, NFT transfers will get a similar tax percentage rate of 3%.
Taxes On Influencers
Further, the lawmakers noted in the bill that they will place a 15% tax on online influencers, who have become a powerful force in the advertising industry. The proposed tax would be levied on income influencers generate through various social media platforms. Also, some of the products and services included in the bill are affiliate marketing, sponsorships, paid subscriptions, and merchandise.
Reactions To Proposed Tax Measures
There have been several thoughts regarding the lawmaker’s move to create new taxes encompassing virtual asset industries.. Kenya markets and research analyst Rufas Kamau addressed the move in a tweet on May 4 noting that the 3% tax was a joke while enquiring whether or not it applies to credit card payments as well as other payment methods such as mobile money services like M-Pesa or Airtel Money .
Passage Of Bill Into Law
In the meantime ,the government is yet to pass this bill into law . Notably ,it will have to go through different assessment sessions including five reading rounds ,reports ,and committees by National Assembly . Finally ,it will eventually move to presidents table for final assessment and consideration before it becomes law .