A week after President William Ruto ordered for a review of the Finance Bill 2023 proposing a 15% tax on digital content creators, the tax has now been reduced to 5%.
Citizen Digital reports that this recommendation has been included in a report by the Finance Committee of the National Assembly and adopted by members of the Departmental Committee on Finance and Planning.
The bill had proposed a 15% per cent withholding tax on income earned through digital content monetisation. This was significantly higher than the 5% rate that content creators currently pay.
According to the new proposed bill, the scope of digital content monetization has now been expanded to include payment gained from advertisements on websites, social media platforms, and other outlets, brand sponsorships, and affiliate marketing.
Others include subscription services where the audience pays a regular fee to view the content, crowdfunding for a creator and membership programs
Local content creators had protested the tax proposal saying it was unfair and that it will amount to double taxation.
The 2023 Finance Bill will be tabled in Parliament tomorrow.
Follow us on Telegram, Twitter, and Facebook, or subscribe to our weekly newsletter to ensure you don’t miss out on any future updates. Send tips to editor@techtrendske.co.ke
