Kenya: Introduced Finance Act, 2020 including Digital Service Tax

On 5 May 2020, the Finance Act 2020, including the Digital Service Tax (DST), was introduced at the National Assembly of Kenya. 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.