Kenya: Government of Kenya implemented Significant Economic Presence Tax under the Tax Laws (Amendment) Act repealing previous Digital Service Tax
Description
Government of Kenya implemented Significant Economic Presence Tax under the Tax Laws (Amendment) Act repealing previous Digital Service Tax
On 27 December 2024, the Government of Kenya repealed the Income Tax (Digital Service Tax) Regulations, 2020, and replaced them with the Significant Economic Presence (SEP) Tax. The Digital Service Tax (DST), which imposed a 1.5% levy on the gross transaction value of digital services, was superseded by the SEP Tax, applying a 3% rate on gross turnover.
Original sourceScope
Policy Area
Taxation
Policy Instrument
Direct taxes including Digital Service Taxes
Regulated Economic Activity
platform intermediary: user-generated content, streaming service provider, platform intermediary: e-commerce, software provider: app stores, search service provider, software provider: other software, infrastructure provider: cloud computing, storage and databases
Implementation Level
national
Government Branch
executive
Government Body
central government
Complete timeline of this policy change
Hide details
2022-12-14
adopted
2022-12-31
in force