This archive report was first published on 1 September 2019.
Published on September 1, 2019, Uber has requested the Kenyan government to provide clarity on what constitutes a digital marketplace to avoid costly litigation.
The Finance Bill 2019 introduced a new provision listing income from digital marketplaces as taxable in Kenya.
Uber, while not opposed to taxation, emphasized the need for clarity to avoid confusion.
The US firm proposed inserting a conditional clause in the Income Tax Act amendments to compel operators to adhere to regulations prescribed by the Treasury Cabinet Secretary.
“That will then allow those in the industries who are in this digital market place to link up with Treasury and the Kenya Revenue Authority to get the right definitions in place for us to deal with this,” said Uber legal advisor Nikhil Hira.
Mr Hira noted that Kenya can draw lessons from India, Singapore, and Malaysia, which have tax measures in place for online transactions.
The Treasury's move aims to capture a share of the billions of shillings changing hands annually on the online space.
Large global firms, including Facebook, Google, and Amazon, as well as local online marketplaces, will be affected by the new tax measures.
