The ACT has introduced a new tax to be known as digital Service tax. It is established under section 12(E)(1) of the Act. Income accruing or derived in Kenya from services provided in through a digital market place. digital marketplace means a platform that enables the direct interaction between buyers and sellers of goods and services through electronic means. A resident person or non-resident persons with a permanent establishment in Kenya will offset the digital service tax paid against the tax payable for that year of income. Digital service tax will be payable at 1.5% of the gross transaction value. The tax is due at the time of transfer of the payment for the service to the service
provider: section 12(E)(2)