Kenya: Annual Supplement (Legal Notice 221 of 2023) revising Income Tax (Digital Service Tax) Regulations was adopted

On 14 December 2023, the 24th Annual Supplement (Legal Notice 221 of 2023) revising the Income Tax (Digital Service Tax) Regulations, 2020 was adopted. The revised regulations cite the Tax Procedures Act as Cap. 469B in sections related to the appointment of a tax representative, amendment of returns, record-keeping, and penalties. The Regulations outline the application of digital service tax (DST) in Kenya, applying to income derived from digital services provided through digital marketplaces. DST applies to services such as downloadable content, streaming platforms, data monetisation, subscription-based media, cloud storage, electronic booking, customised search engines, and online training. However, it excludes financial services provided by authorised institutions and government-provided online services. The tax is imposed on the gross transaction value of the service, excluding VAT. Non-resident providers can register under a simplified framework or appoint a tax representative