Kenya, just like other governments across the East African region, has steadily continued to implement initiatives to foster a conducive environment for doing business as acknowledged by the World Bank’s Ease of Doing Business 2020 report.
At a webinar titled the Kenyan budget and dash to digital taxation, slated on 19th June 2020 at 11.00 AM EAT, CIO East Africa hosts adepts to elucidate the recently read Kenyan Budget and its implications to the economic development. The speakers will also discuss digital taxation as intended for the country.
Join in as we host Rose Mwaura, Chairperson, Institute of Certified Public Accountants of Kenya (ICPAK), Esther Kinuthia, the Senior Manager at KPMG, and Rose Kimwatu, the Head of Public Policy at Oxygene Marketing Communication Limited in the one-hour session to be moderated by Laura Chite, CEO. CIO East Africa.
Kenya has continued to prioritise its pillar of the digital economy blueprint in the budget, with its ICT sector allocation in the current budget totalling to Ksh 14.9 billion. It leverages measures inclined on strengthening access to ICT and credit amongst micro, small, and medium-sized enterprises (MSMEs) to enhance their growth while investing in technology to improve digital literacy and skills and to expand digital infrastructure.
“The future of the country’s economy and growth will be determined by its ability to take full advantage of rapid technological advances to facilitate access to affordable broadband connectivity thus accelerating digitisation,” avers Laura Chite.
What then does the digital taxation aspect of the just read budget mean for digital traders in the country?
“Goods and services supplied in the digital marketplace will now be subject to income tax and VAT,” read the 2020/21 budget statement in part.
These levies should, however, not come as a surprise to Kenyans following Kenya Revenue Authority’s declaration in 2018 of its intention to broaden its tax base by introducing taxes on the emerging digital economy. It ‘’s no doubt that digital traders are queued to experience changes to the Income Tax and VAT Acts as introduced by the Finance Act, 2019 (the Act).
Hitherto, the merging issues include concerns on the extent to which the government will widen the tax bracket on the digital platform and how the 2020/21 ICT budget will impact the country’s economy.
Grab your seat to understand insights into the 2020/21 budget as we aim to grow the economy together for the better.
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