On 16 December 2020, the Kenya Revenue Authority (KRA) published the final Income Tax (Digital Service Tax) Regulations, 2020. The regulations come into force on 2 January 2021 and provided for the implementation of the Digital Service Tax (DST) introduced by the Finance Act 2020, which is levied at a rate of 1.5% on the gross transaction value of digital services provided in Kenya.
Key aspects of the final regulations are as follows:
Scope of Taxable Services
Digital services for which…