Kenya: Implemented Finance Act, 2020 including Digital Service Tax

On 1 January 2021, the Finance Act 2020, including the Digital Service Tax (DST), entered into force. DST applies to income derived from services offered via digital marketplaces charged at 1.5% of the gross transaction value, excluding value-added tax. DST applies to resident and non-resident digital service providers, marketplace providers, or their tax representatives. For residents, DST is an advance tax deductible from annual income tax, while for non-residents without a permanent establishment, it is a final tax. Taxable services include downloadable content, streaming, data monetisation, subscription-based media, cloud services, online training, and platform commissions.