According to the Kenya Revenue Authority (KRA), a new Kenyan law seeks to tax cryptocurrency traders’ income. A bill to control and tax crypto transactions in Kenya was delivered to the Kenyan Parliament on November 21.
In Kenya, there are over 4 million cryptocurrency traders, and if the bill is passed, the state’s revenue collection agency, the Kenya Revenue Authority (KRA), will be tasked with collecting taxes from them.
The new measures seek to impose a tax on digital wallets and cryptocurrency exchanges that would operate similarly to an indirect tax on banking deals.
If lawmakers pass changes to the law to regulate and tax the quickly expanding digital currency exchange, the Kenya state income regulators are going to permit more than 4 million citizens to possess crypto.
Cryptocurrency excise tax is deducted at 20% by Kenyan banks
Kenyan banks will be required to add a 20% fee to all fees and charges related to cryptocurrency trading under the Capital Markets Amendment Bill.
In addition, Kenyans are now going to have to pay state profits to KRA to raise the market cost of their crypto when they trade them or utilize them in trading if the bill is sanctioned.
Kenyans who own a business might be required to pay income tax on their earnings. Income tax is applicable, said mr. A. Kirwa in response to the new bill.
According to Business Daily, Kenya has now expanded its regulation of digital currency trading for the first time and adopted cryptocurrencies. Dealers of cryptocurrencies are required by the bill to supply the state marketplaces regulators with specified info for taxation aims.
One must also let the state know the kind of electronic money he is trading, as well as the time on which one has bought and sold the currency.
Any individual holding or trading electronic money must supply the authorities for taxation intentions with the sum of the returns from the dealings, the amount of the associated costs, and the quantity of any profits or losses on the digital currency, as stated in the bill.