Dear Taxpayer,
The Finance Act 2020 introduced a new tax known as Digital Service Tax (DST) effective 1st January 2021. DST is charged at 1.5% of the gross transaction value and shall be payable by a person whose income from service is derived from or accrues in Kenya through a digital market place. Tax shall be due at the time of transfer of payment for the service to the service provider.
For residents and companies with a permanent establishment in Kenya, the DST will be offset against the income taxes due in the year of income. For non-residents and companies without a permanent establishment in Kenya, DST will be a final tax.
For queries or further assistance, call 0711 099 999 or send us an email to
callcentre@kra.go.ke.
Sincerely,
Commissioner for Domestic Taxes.