Kenyan online entrepreneurs have been put on the spot by Kenya Revenue Authority (KRA) for tax evasion.
In a public notice, the taxman noted of a rapidly increasing number of online entrepreneurs who do not file tax returns or pay taxes on transactions, reported Nairobi News.
“KRA would like to advise that unless income or supply is expressly exempt in the law, appropriate taxes should be paid,” read the notice.
“Taxpayers whose annual taxable turnover is Sh5 million and above should register for VAT obligation and charge tax, while those whose turnover is below Sh5 million should pay presumptive tax.”
The authority has also invited taxpayers who need assistance in declaring taxes to a sensitization program. “To this end, all taxpayers engaged in online trading in goods and services are invited for a sensitization forum on 17th May 2019 from 8:30 am to 11:00 am at Hilton Hotel,” read the notice.
With the advent of social media platforms such as Instagram, WhatsApp and Facebook, many Kenyan youths are not only using the platforms to chat with family and friends but also as a market place.
Numerous people have converted social media platforms into businesses selling different wares from clothes, shoes, bags, accessories and kitchen utensils. Deliveries are usually made free of charge within the city centre, while a small fee is charged for home deliveries.