The Kenyan ICT ministry is in the final stages of developing a framework that will be used to tax foreign online streaming media services such as YouTube and Netflix.
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“Many countries, especially developed ones, have policies that guide these services, and that is where we are heading to as a country,” announced Francis Wangusi, director-general of the Communications Authority of Kenya.
“I believe the OTTs will declare the correct revenues, considering that the international community is also watching them,” Wangusi said, adding that once a policy is developed the government will have grounds to shut down those that will not adhere to the rules.
Several authorities including the Directorate of Criminal Investigations, CA’s cybercrime investigations arm and the department of children services, are some of the places parents and the community need to encourage the youth to run to,” Wangusi said, while speaking on the sidelines of the National Music Festivals.
The Kenya Revenue Authority (KRA) has announced plans to collaborate with CA to introduce VAT obligations for app developers trading in Kenya. The taxman will target apps with in-app purchases, those that sell goods and services and those that require users to pay before downloading.
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