KRA imposes tax on social media influencers

The Kenya Revenue Authority (KRA) issued a statement indicating that social media influencers will not be exempted from the newly imposed Digital Service Tax (DST).

KRA states that the social media influencers also fall under the new tax as they earn from facilitating online businesses and individuals to generate revenue.

“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. Kindly note an influencer is a person who commands a following through a media platform through the products or services they use or engage in to drive sales or fame,” KRA stated.

The newly imposed DST took effect on January 1, 2021, with all digital service providers both resident and non-resident, providing services within the country to remit their taxes to KRA before the end of every month.

The taxman reiterated that DST will be charged on services resulting in revenue generation whereas Value Added Tax (VAT) will be charged on the goods sold.

“Kindly note the tax will be collected and remitted by agents appointed by the commissioner of Domestic Taxes,” KRA stated.

KRA further stated that individuals and companies offering digital services would be required to pay 1.5 per cent of their gross transaction value as DST effective January 1.

The tax shall be due on or before the 20th day of the month the digital service was offered.

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