While the advent of social media has brought about the perks of ‘Being your own boss’ through content creation, birthing contemporary household names such as Elodie Zone, who began making millions from social media while still minors, the games and fun are about to get more complicated as it is now time to talk matters taxation.
In a public notice, the the Kenya Revenue Authority (KRA) noted of a rapidly increasing number of online entrepreneurs who do not file tax returns or pay taxes on transactions.
“KRA would like to advise that unless income or supply is expressly exempt in the law, appropriate taxes should be paid,” read the notice.
“Taxpayers whose annual taxable turnover is Sh5 million and above should register for VAT obligation and charge tax, while those whose turnover is below Sh5 million should pay presumptive tax.”
The authority has also invited taxpayers who need assistance in declaring taxes to a sensitization program. “To this end, all taxpayers engaged in online trading in goods and services are invited for a sensitization forum on 17th May 2019 from 8:30 am to 11:00 am at Hilton Hotel,” read the notice.
Numerous people have converted social media platforms into businesses selling different wares from clothes, shoes, bags, accessories and kitchen utensils. Deliveries are usually made free of charge within the city centre, while a small fee is charged for home deliveries.