30 Nov, Thursday
How To Pay Digital Service Tax In Kenya

How To Pay Digital Service Tax In Kenya

This article focuses on how to pay Digital Service Tax In Kenya. Digital Services Tax (DST) is levied on income earned or collected in Kenya from services provided through digital marketplaces. Statements and DST payments must be made no later than 20 days after the end of the month in which the digital service is provided.

How To Pay Digital Service Tax In Kenya

The digital services tax will be paid in Kenyan currency and deposited into KRA accounts authorized by Kenyan banks. DST is paid by resident and non-resident digital service providers, digital marketing providers or their designated tax representatives (in the case of non-residents residents or providers without a permanent establishment in Kenya).

Digital Services Tax Rate

1.5% of gross business profit;

In the case of providing digital services, the payment is received in return for the service.

In the case of digital marketing, services or fees are paid to digital marketing providers for using the platform.
Trading prices are exclusive of VAT.

Services are taxed under the Digital Services Tax Act

  • Downloadable digital content, including downloadable mobile apps, e-books and movies.
  • Play TV shows, movies, music, podcasts and all kinds of digital content.
  • The sale, licensing or any other form of monetization of data collected from Kenyan users generated through user activities in digital markets.
  • Digital Marketing.
  • Subscription media, including news, magazines and newspapers.
  • Electronic data management, including website hosting, online data storage, file sharing and cloud storage services.
  • Electronic reservation or electronic ticketing services, including online ticket sales.
  • Providing search services and ATM services, including providing personalized search services.
  • Online distance learning through pre-recorded media or e-learning includes online courses and training.
  • Any other important services provided through digital marketing.