• The Kenyan government is reportedly considering new tax measures affecting cryptocurrency transactions, online advertisement, and NFT transfers.
• These tax measures include a 3% capital gains tax on profits from cryptocurrency trading, a 3% tax on the transfer of NFTs, and a 15% tax on income generated by online influencers.
• The bill is yet to be passed into law and must go through various assessment sessions before it can become law.
Kenyan Government Considers New Tax Measures Affecting Cryptocurrency Transactions
The Kenyan government is reportedly considering placing new taxes on cryptocurrency transactions, online advertisement, and non-fungible token (NFT) transfers as part of its budget-financing measure. Under the proposed bill, profits made from cryptocurrency trading would be subjected to a 3% capital gains tax. Additionally, there will also be a 3% tax levied on NFT transfers while income generated by online influencers would be taxed at 15%.
Proposed Bill Yet To Be Passed Into Law
The proposed bill has not been passed into law yet and must undergo several assessment sessions before it can become law. This includes five reading rounds, reports and committees which must take place in the National Assembly followed by final assessment and consideration at the president’s table.
Reactions From Individuals Regarding The Proposed Bill
Several individuals have weighed in with their thoughts regarding the lawmaker’s proposal for new taxes encompassing virtual asset industries. Kenya markets and research analyst Rufas Kamau noted that the 3% tax on digital assets was “a joke” while enquiring if this applied to credit card or other payments as well.
What Are Non-Fungible Tokens (NFTs)?
Non-fungible tokens (NFTs) are digital assets that represent ownership of unique artwork, music or videos which are stored on blockchain technology. They provide proof of authenticity due to being stored immutably in distributed ledgers making them highly sought after in recent times as collectors items as well as investments.
The Kenyan government is looking for ways to generate more revenue streams to finance its budget with new taxes affecting cryptocurrency transactions, online advertisement, and non-fungible token transfers being considered under consideration at present time. However this proposed bill needs to pass through multiple assessments before it can become law while reactions from individuals have been mixed so far concerning these possible new taxes being imposed by lawmakers.