The Kenyan government has introduced new tax regulations for freelancers
This update by the Kenyan government will reshape the way Kenyan freelancers work with the world. Tax obligations are undergoing a transformation, and it is important that YOU know!
The Kenyan government has introduced new tax regulations, including Value-Added Tax (VAT) on freelancer earnings on the online platform Upwork. Meanwhile, other freelancing platforms’ tax compliance remains uncertain.
Now, freelancers based in Kenya must pay an additional 16% of the service cost as VAT to the government. ????
A statement on Upwork’s website reads,
“Tax rate amount
In Kenya, the VAT rate is 16% of the cost of the service being taxed. For example, if you pay $100 USD in freelancer service fees, you will pay $16 in tax, for a total of $116.
You’ll see the estimated amount of tax when you check out and on your invoices and Transaction History.”
But don't fret! We're all in this together, and we've got your back. Let's navigate these changes hand in hand, ensuring our success as pioneers of Africa's freelancing landscape.
My thoughts, in a world that is constantly changing, new important regulations will always be introduced. As builders in Africa's future of work, our only ask is, may the people most affected by the new regulations, be involved in the processes that shape their global competitiveness and most importantly their lives.
Would African governments consider different tax regulations if the freelancing platforms are African-based? Maybe.
Share your thoughts in the comments below! Let's build a thriving community of empowered freelancers, ready to conquer new horizons!
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Expert Bubble Developer - Business Apps | Design | AI Integrations
1 年This move may back fire on the government. I see a lot of freelancers utilising this option to change countries. That tax will definitely make them less competitive on the global market place.
Government Sales Executive at SYNERJE Global Solutions LLC
1 年That is quite unfortunate so to speak Tongayi Choto