Kenya Proposes Real-Time Tax System for Cryptocurrency Transactions

According to PANews, the Kenya Revenue Authority (KRA) has proposed the establishment of a tax system integrated with cryptocurrency trading platforms to enable real-time monitoring of transactions. Under this system, the KRA aims to capture key information from each transaction, such as the time and value of the trade. The tax authority has indicated that the current system is unable to track cryptocurrency transactions, resulting in significant tax revenue losses. The KRA referenced Section 3 of Kenya's Income Tax Act, which permits the taxation of cryptocurrency income. A KRA official stated, 'Our goal is to establish a robust and efficient system to effectively collect cryptocurrency taxes.' In addition to the real-time tax system, Kenya is also considering the use of artificial intelligence (AI) and machine learning technologies to detect tax evasion. These technologies are expected to optimize the KRA's tax collection processes and enhance transparency.