THE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF KENYA
(Established under the Accountants Act, Laws of Kenya)
Digital service tax and BEPs development on taxation of e-commerce
Date: 16th March 2023
Time: 04.00pm-06.00pm
Venue: Online
Overview
Collecting taxes is a fundamental way for countries to generate public revenues that make it possible to finance investments in human capital, infrastructure and the provision of services for citizens and businesses. Taxes have a key role to play in making growth sustainable and equitable especially in the context of the Covid-19 pandemic. However, Governments need to balance goals such as increased revenue mobilization, sustainable growth and reduced compliance costs with ensuring that the tax system is fair and equitable.
The concept of Digital Service Tax (DST) was introduced in Kenya through the Finance Act, 2019 and enacted through the Finance Act, 2020. It covers both the Income Tax Act and Value Added Tax Act. Hence a concept that any organization or individual operating in the digital marketplace should be alive to. Any digital service provider is subject to Digital Service Tax if they provide or facilitate provision of a service to a user who’s located in Kenya. E-commerce boosts the economy by increasing productivity, encouraging innovation, and driving better shopping experience. This digital shift has had wide implications in trade and development. It is influencing behaviour of people, businesses, and government, helping drive an unprecedented transformation on how goods and services are developed, sold, distributed, and consumed. These digital realities are shaping trade patterns.
The training is intended to provide the delegates with critical knowledge and insights on compliance with the new tax frameworks. The training focuses mainly on the concept of Digital Service Tax and its effects on the e-commerce platform. Further, the training will have an overview of what is taxable supply in the context of a digital marketplace, how DST is computed and filed as a return.
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 topic.
The following key topics among others that will be discussed in the webinar:
- Effects of Digital Service Tax (DST) on economic development.
- Context of the digital marketplace.
- DST application in the local context.
- What is the rate for DST?
- DST due date.
- Is DST a final tax?
- What constitutes:
- Resident
- Permanent establishment
- Scope and benefits of DST
- DST exemptions
- Global developments on BEPS
Target Audience
This webinar will be useful to all professional Accountants and those aspiring to join the profession
Continuous Professional Development Units (CPD Units):
Members of ICPAK and reciprocating professional bodies will be awarded 2 CPD Units upon successfully attending each of the sessions.
Cost:
Charges for the training will be Kes 1,000/= which will cover workshop fees, materials, and e-certificates of attendance.
Online Booking:
We call on Seminar participants to note that booking for 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)
