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Social media influencers to pay tax in new law

The Kenya Revenue Authority (KRA) made a new announcement on tax payments. All social media influencers will pay Digital Service Tax (DST) according to the new law.

KRA has clarified that social media influencers also fall under the new tax. The reason is that they earn a living by facilitating online businesses and individuals.

“Social media influencers will have to pay a digital service tax. This is because they derive or accrue their income from providing services through a digital marketplace. Some provide digital advertising services in Kenya,” the statement from KRA reads in part.

“Kindly note an influencer is a person who commands a following through a media platform through the products or services they use,” KRA explained.

The Digital Service Tax (DST) took effect on 1st January 2021. Consequently, all resident and non-resident digital service providers in the country will remit their taxes to KRA before the end of every month.

Digital services

KRA explained that they would charge Digital Service Tax (DST) on services that generate revenue and Value Added Tax (VAT) on goods that people sell.

“Kindly note that the commissioner of Domestic Taxes has appointed agents. They will collect and remit tax,” KRA stated.

The announcement has generated a debate online. Most Kenyans are castigating KRA for the new directive. Several argued that social media influencers do not earn a lot of money.

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