A bill defining crypto assets as securities and featuring the capital gains tax on them made it through the Parliamentary Committee. It will be introduced to the lower chamber of Parliament as a next step.
As the Kenyan newspaper Business Daily reported on Dec. 4, the Capital Markets (Amendment) Bill, 2023, has been approved by the National Assembly’s Finance and National Planning Committee. The report cites the Chairman of the Committee, Kimani Kuria:
“This is a very critical law that will guard our country against proceeds of crime and terrorism financing. Cryptocurrencies are already being traded by millions of Kenyans yet we have no law to govern it. We approve this Bill for publication.”
After the Committee’s approval, the bill will head to the reading in the National Assembly, the lower chamber of the Kenyan Parliament.
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The Capital Markets (Amendment) Bill, 2023 amends the country’s tax code, imposing taxes on crypto assets stored on crypto exchanges and digital wallets. In its framework, Kenyans will pay capital gains for the increased crypto market value when they sell or use it in a transaction. While the bill’s text is still unavailable in full, according to the Business Daily, “banks [will] deduct 20 percent excise duty on all commissions and fees charged on transactions.”
Should the bill pass, the citizens of Kenya would be obliged to declare all their crypto assets and their value in Kenyan shillings to the Kenya Revenue Authority (KRA). As the fragment of the bill, cited by the newspaper, goes:
“A person who possesses or deals in digital currency shall provide the Authority with the following information for tax purposes—the amount of proceeds from the transaction, any costs related to the transaction and the amount of any gain or loss on the transaction.”
While Kenya is only preparing to introduce its crypto taxes, the tax services in other countries have recently been quite vocal in their desire to chase all those who didn’t declare their crypto accurately. For example, His Majesty’s Revenue and Customs demanded that the British hodlers declare any crypto they failed to report in the last four, six, or even 20 years.
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