🇰🇪Kenya Revenue Authority upgrades system, cryptocurrency transactions will be nowhere to hide!
The Kenya Revenue Authority (KRA) is going big! They are going to replace a new tax system to monitor cryptocurrency transactions in real time. Yes, the kind that can record the date, time, type and value of transactions.
Imagine that this new system is like a superhero in the tax world, able to capture every trace of transactions and ensure that every penny can be traced, making tax evasion more difficult.
According to reports, this system will be launched before the end of the year. It will work closely with cryptocurrency exchanges and record detailed information about each transaction.
This is no small matter, because there are nearly 4 million cryptocurrency players in Kenya, and the transaction volume last year reached 18.6 billion US dollars. This market is so big that people have to pay attention to it.
Although the cryptocurrency market in Kenya is still relatively free, KRA official Nickson Omondi said that they already have some tax laws, but they were mainly aimed at companies that did not have a physical office in Kenya.
However, they updated the tax law last September to make it clear to cryptocurrency investors that they need to pay taxes on the income from these transactions.
Omondi also mentioned that according to the current law, cryptocurrency exchanges have to pay 3% of the transaction amount to the government. This also means that Kenya needs to bring cryptocurrency transactions into the formal tax system.
At the same time, KRA will also use artificial intelligence (AI) and machine learning to analyze data to find people who evade taxes, making tax work more efficient, accurate and compliant.
The government also plans to use M-PESA payroll and cash register numbers as electronic tax registers starting December 25, 2024. To expand the tax base and combat tax evasion.
At the same time, there is a tax evasion case involving a cryptocurrency exchange in Nigeria that is still under trial. The company did not register for taxes, violating local tax laws, and Binance became the only defendant in the case.
In terms of cryptocurrency taxation, African countries are getting serious. Kenyan cryptocurrency experts will have to consider tax issues when trading cryptocurrencies in the future.
