Lawmakers in Kenya are debating the Capital Markets (Amendment) Bill 2022 which seeks to introduce crypto taxation to crypto exchanges, digital wallets and individual transactions. Local publication Business Daily reports that a bill sponsored by MP Abraham Kirwa is seeking to introduce a 20% excise tax on every cryptocurrency transaction executed in the country.
According to the Bill, if a person holds digital currency for under a year, they will be required to pay an income tax, but if the period exceeds 12 months, the capital gains tax will apply instead.
The new bill comes almost two years after Kenya came up with the Digital Service Tax (DST) as part of the country’s Finance Act 2020. DST became effective in January 2021 and introduced a 1.5% tax on services including cryptocurrency transactions executed via digital marketplaces.
Meanwhile, Kenya’s proposed plan to amend its capital markets law to introduce crypto taxation comes five months after the United Nations Conference on Trade and Development (UNCTAD) called on developing countries to ensure comprehensive financial regulation by mandating the registration of crypto exchanges and digital wallets.
(by Solomon Oladipupo)