Anthony Mwaura reported that for the 2023-2024 financial years, the KRA collected taxes from 384 cryptocurrency owners totaling 10 billion shillings (about $77.5 million). Over the next five years, the agency intends to collect at least $158.8 billion in taxes from owners of digital assets.
To ensure that more money flows into government coffers from crypto traders, the KRA has proposed implementing a tax system that will be integrated with cryptocurrency exchanges to track transactions in real time. The system is expected to collect important information including the timing of trades and the amount of transactions.
“If the Tax Service can come to an agreement with the Central Bank of Kenya, then within this year we will be able to establish interaction with crypto services. Therefore, tax revenue could reach 60 billion shillings ($465 million),” Mwaura said.
Previously, the agency planned to use machine learning, artificial intelligence (AI) and data analytics to combat tax evaders trading cryptocurrencies. Last year, Kenyan President William Ruto signed a finance bill that introduced a 3% tax on the transfer and exchange of digital assets.
Source: Bits
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