The Kenya Revenue Authority (KRA), which is in charge of collecting revenue on behalf of the Kenyan government, intends to tax crypto transactions in all Kenyan exchanges if the Capital Markets (Amendment) Bill 2022 is approved.
According to reports, plans are in the works to change the capital markets law and impose a 20% excise tax on all cryptocurrency transaction fees.
The Capital Markets (Amendment) Bill, 2022 would allow for the taxation of cryptocurrency exchanges, digital wallets, and transactions.
When crypto investors in Kenya sell or use their crypto in a transaction, they must pay capital gains tax to the Kenya Revenue Authority. It would also require investors to inform the Capital Markets Authority of their crypto ownership details like the type of virtual currency, the date it was acquired, the date it was sold, and the amount of proceeds with costs and gains on the same.
“Where the digital currency is held for a period not exceeding twelve months, the laws relating to income tax shall apply or for a period exceeding twelve months, the laws relating to capital gains tax shall apply,” Mosop MP Abraham Kirwa said.
