Betting Companies in Kenya to Pay Taxes Daily


Betting companies in Kenya will now pay taxes daily by 1 am in new reforms that have seen KRA plug into their platforms to allow real-time computation of taxes as the government moves to tame rogue entities in the sector.

The integration of the systems was one of the reforms under the revenue administration, said Treasury Principal Secretary Chris Kiptoo.

Recently, the taxman completed a pilot that saw it interlink its tax system with the betting sector to track the 15 per cent tax on betting, gaming and lottery as well as the 20 per cent withholding tax on winnings collected from punters every day.

Speaking on the first day of a public hearing on the Financial Year 2023/24 budget, Dr Kiptoo said that KRA had made these improvements on tax administration for optimal collection.

“This improvements include implementation of a new Web-based improved VAT System; integration of KRA system with the Betting Sector and mapping of rental properties.” Dr Kiptoo.

This is part of the taxman’s new digital strategy to increase tax compliance as the government eyes a bigger slice of the billions made from the gambling craze.

KRA has linked its systems with those of around seven sports gaming firms in what is aimed at sealing the loopholes of tax leakages that were exacerbated by the 30-day time lag.

All the tax heads are normally paid after 30 days. However, the gambling companies have been remitting the taxes they collect every day by 1 am when a lot of Kenyans stop betting.

The government also re-introduced a 7.5 per cent tax on every betting stake, meaning for every KES 100 staked, the taxman takes KES 7.5.

Data from the KRA shows that tax on gross gaming revenue rose 13 per cent to KES 3.294 billion in the year ended June from KES 2.907 billion a year earlier.

 

Kenyan Wall Street

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FIRSKenyataxTreasury Principal Secretary Chris Kiptoo

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