THE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF KENYA
(Established under the Accountant Act, Laws of Kenya)
Digital Service Tax and BEPs Development on Taxation of E-commerce
Date: 11th March 2021
Time: 4.00 – 6.00 PM
Platform: Virtual Webinar
OVERVIEW
The digital services tax was introduced by the government in 2019. The subject of the tax is certain supplies made through a digital marketplace, and a digital marketplace is defined as “a platform that enables direct interaction between buyers and sellers of goods and services through electronic means.”
A draft of digital services tax regulations (August 2020) was released as a guide for implementation of the digital services tax and is expected to be effective 1 January 2021 (after publication of the final regulations).The digital services tax rate is 1.5% of the gross transaction value. The gross transaction value is the payment received as consideration for the digital service. In the context of a digital marketplace provider, the transaction value is the commission or fee paid for the use of the platform.
Digital services tax is payable on certain services, and payable by the digital service provider or any person that collects payments for digital services when transferring payment for the service to the service provider.
Foreign companies that provide digital marketplace services to consumers in Kenya will be subject to digital services tax. The digital services tax will be an advance tax for resident or non-resident persons with a permanent establishment in Kenya that provides digital services through a digital marketplace. A non-resident person without a permanent establishment in Kenya may appoint a representative to account for the digital services tax.
Base erosion and profit shifting (BEPS) refers to corporate tax planning strategies used by multinationals to “shift” profits from higher-tax jurisdictions to lower-tax jurisdictions, thus “eroding” the “tax-base” of the higher-tax jurisdictions.
It is against this background that the Institute has organized an upcoming webinar to provide more insights on the Digital Service Tax and BEPS Development on Taxation of ecommerce considerations to address all the underlying issues relating to this matter.
The following key topics among others will be discussed in the webinar:
1. What is the Digital Service Tax (DST?)
2. What is a digital marketplace?
3. When is DST effective?
4. What is the rate for DST?
5. When is the due date for DST?
6. Is DST a final tax?
7. What constitutes:
8. Resident
9. Permanent establishment
10. Benefits of DST
CONTINUOUS PROFESSIONAL DEVELOPMENT UNITS (CPD UNITS):
Members of ICPAK and those from reciprocating professional bodies will be awarded 2 Structured CPD Units upon successfully completion of the Webinar.
TARGET AUDIENCE:
Chief Finance Officers, Finance Directors and Managers, Private and Public Audit Practitioners, Public Sector Accountants, Transaction Advisors, Engagement Partners and Key Audit staff, Banking, Financial services sector Accountants, Internal Auditors, Tax Practitioners, Professionals working in Government and private sectors, Accountants in Academia
FINANCIAL COMMITMENT:
Charges for the training will be Kes1,500/= which will cover Webinar fees, and an e-certificate of attendance.
ONLINE BOOKING:
We call on Webinar participants to note that booking is available only online at www.icpak.com/events and will close two hours before the training session. Delegates are reminded to note that online booking for training sessions is MANDATORY. This is available either online at www.icpak.com/events or on the ICPAK Live – A smart phone based application that is available from google store.
NATIONAL INDUSTRIAL TRAINING AUTHORITY (NITA) REIMBURSEMENT:
The Institute is registered as a trainer with National Industrial Training Authority. The Institute’s registration number is DIT/TRN/47. Participants who are registered levy contributors should apply to NITA for reimbursement of their fees. Please note that this is applicable for Kenyan citizens only and subject to NITA regulations. Remember that to qualify you should apply to NITA for approval prior to the date of the conference. Further details can be obtained from their website (www.nita.go.ke)
Further requests can be channeled to us via telephone calls on +254 719 074 000, (+254) 733 856262 or via email to Andrew Kavoo at; andrew.kavoo@icpak.com with a copy to memberservices@icpak.com
We encourage members to regularly visit our website https://www.icpak.com for updates.