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Kenya Adopts OECD Global Tax Reforms, Withdraws 1.5% Digital Services Tax by 2025

  • Kenya is withdrawing its 1.5% Digital Services Tax by 2025
  • Kenya will replace the DST with a Significant Economic Presence Tax charged at 30% on 20% of deemed gross profits from sales on a digital marketplace
  • Kenya is aligning with OECD global tax reforms, which will unlock a free trade deal with the US
  • The OECD has suggested that the DST should be withdrawn and forecasts the new tax pact raising $250 billion for all countries signed up
  • In 2022, Kenya had plans to double the DST to 3% before changing course

Source: vatcalc.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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