The Kenyan Revenue Authority (KRA) wants to better handle cryptocurrencies by implementing a real-time tax system that works with platforms.
This method would keep track of all crypto transactions, writing down information like the time and amount so that taxes can be collected. Kenya is thinking about using AI and machine learning to fight tax evasion in addition to real-time taxing. With these tools, tax collection would be more efficient and clear.
Watching crypto transactions in real time
The Kenyan Revenue Authority (KRA) wants to connect Bitcoin exchanges to a tax system to track transactions in real-time. The KRA would record important information about each deal, such as the time and value, under this system.
The IRS says that the current system can’t keep track of crypto trades, which means that a lot of money is being lost. It talks about Section 3 of Kenya’s Income Tax Act, which says that crypto income can be taxed.
A Kenyan tax collector said, “The goal is a strong and effective system for collecting taxes on cryptocurrency effectively and efficiently.”
A report from Techpoint Africa says that Kenya’s decision to keep track of crypto trades shows that the country is becoming known in Africa as a crypto-friendly place to live.
As Bitcoin.com News has already said, Kenya is one of the African countries where people use cryptocurrencies a lot. Kenyans and many other Africans use cryptocurrency for more than just trade. They also use it to protect themselves against inflation and currency depreciation.
Kenya is also thought to be thinking about using artificial intelligence (AI) and machine learning to find people who are not paying their taxes. These tools should make it easier for the KRA to collect taxes and show how much money they are making.
It is part of the Kenyan government’s plan to bring in more money that M-Pesa bills and store numbers will be used as virtual electronic tax records starting December 25, 2024. But these changes, which are meant to help the government’s finances, have been met with resistance, especially from younger Kenyans.
Many outsiders think that the recent riots, in which several people died, were caused by the Kenyan government’s plans to raise taxes and make other changes.
