BUSINESSECONOMY

Govt Squeezes Content Creators, Influencers With New Taxes

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The Finance Bill 2023 notably proposes higher taxes and levies on personal income. Content creation is among new spaces the State is keen on tapping into to raise revenues.
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Influencers and content creators in Kenya could have to part with more of their earnings if new tax proposals in the Finance Bill 2023 sails through. The bill seeks to amend the Income Tax act to include provisions for monetization of digital content.

As per the bill, digital content monetization means offering for payment entertainment, social, literary, artistic , educational, or any other material electronically through any medium or channel, in any forms including ‘sponsorship where a brand owner pays a content creator for content creation and promotion.’

Other forms of of digital content monetization featured in the bill include ‘advertisements on websites, social media platforms and similar networks by partnering with brands including endorsements from sellers of such brands.’

It also includes provisions for affiliate marketing where the content creator earns a commission whenever the audience of the content creator clicks on the product link.

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The bill also covers subscription services where the content creators’ audience pays a recurring fee, membership programmes, merchandise sales, licensing of content and crowdfunding for the specific goals of a content creator or someone else.

The Finance Bill 2023 notably proposes higher taxes and levies on personal income. Content creation is one of new spaces the State is keen on tapping into to raise revenues.

The Finance Bill also proposes a new tax on transfers of cryptocurrencies, NFTs and other digital assets, known as the Digital Assets Tax. The 3% tax will be charged on income derived from the transfer and exchange of digital assets. Platforms facilitating the transfer, such as crypto exchanges, will be expected to deduct and remit the digital assets tax.

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Written by
BUSINESS TODAY -

editor [at] businesstoday.co.ke

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