The Treasury has proposed a 6 percent Significant Economic Presence Tax (SEPT) for digital firms in Kenya, including ride-hailing and food delivery services.
This tax will replace the current Digital Service Tax, increasing the rate from 1.5 percent for non-resident entities earning income through Kenyan digital marketplaces.
Treasury Cabinet Secretary John Mbadi explained that the tax will apply to non-resident individuals whose income from services is derived from or accrued in Kenya via these digital platforms.
The aim is to ensure fair contributions from foreign companies benefiting from the Kenyan economy.
Additionally, a Minimum Top-Up Tax will be introduced for multinational enterprises with revenues over Sh100 billion, requiring a minimum effective tax rate of 15%.
