Kenya: Govt Finalises Plans To Tax Netflix, YouTube
The Kenyan ICT ministry is in the final stages of laying down a framework that will be used to tax foreign online video streaming services such as Netflix and YouTube.
When the new tax laws are passed, the over-the-top services (OTT) will then be required to declare the incomes that they get from Kenyan consumers.
OTT services include all platforms that offer voice and messaging services on the internet.
The Director-General of the Communications Authority of Kenya, Francis Wangusi, said that online content providers receive a lot of revenue from the Kenyan industry, yet neither the government nor the nation’s artistes benefit from them.
He added that the proposed policy framework would also ensure that foreign advertisements that are aired in Kenya are subjected to taxation.
The Kenya Revenue Authority (KRA) recently announced plans to work together with CA to put VAT obligations in place for app developers trading in Kenya. Tax would then be added to apps with in-app purchases, those that sell services and those that require users to pay first before downloading.
Francis Wangusi urged parents and teachers to encourage the youth to seek help from the authorities when faced with online risks such as abuse, sexual exploitation and other cybercrimes.
He mentioned online grooming, cyberbullying, solicitation, stalking, sexting, catfishing and identity theft as some of the risks children are exposed to.