Kenya’s crypto tax bill will make it through a parliamentary committee

A bill that would define crypto-assets as securities and subject them to capital gains tax has made it through a Kenyan parliamentary committee. It will then be presented to the lower house of parliament.

Kenyan newspaper Business Daily reported on December 4 that the Capital Markets (Amendment) Bill, 2023, was approved by the National Assembly's Committee on Finance and National Planning. The report quoted committee chairman Kimani Kuria as saying:

“This is a very important law to protect our country from the financing of crime and terrorism. Cryptocurrencies are being traded by millions of Kenyans but we have no laws to govern us. We have approved this bill for publication.”

After the committee's approval, the bill will head to the reading stage in the lower house of the Kenyan Parliament.

RELATED: Wallet crypto bot launched by Telegram in Colombia, SA and Kenya

The Capital Markets (Amendment) Bill, 2023, amends the country's tax code and imposes taxes on crypto assets stored on crypto exchanges and digital wallets. Under its framework, Kenyans pay capital gains when they sell or trade in the increased value of the crypto market. While the full text of the bill is not available, Business Daily reports, “Banks [will] 20 percent excise duty deduction on all commissions and charges on transactions.

If the bill passes, Kenyan citizens will be required to report all their crypto assets and their value in Kenyan shillings to the Kenya Revenue Authority. The report quoted a section of the Act:

“A person holding or dealing in digital currency must provide the authority with the following information for tax purposes: income from the transaction, expenses related to the transaction and the amount of any profit or loss on the transaction.”

While Kenya is just getting ready to introduce its crypto tax, tax authorities in other countries have recently been voicing their intention to go after those who haven't properly declared their cryptocurrencies. For example, HM Revenue and Customs recently asked UK travelers to declare any crypto they haven't reported in the past four, six or 20 years.

Magazine: Real AI Matters in Crypto, Issue 3. Use Modern Contract Auditing and Cyber ​​Security