Kenya Revenue Authority (KRA) has kickstarted the process of imposing tax on Airbnb owners.
In the latest move, KRA has request Airbnb Inc to provide relevant data that will help structure the tax regime for the sector.
This request, spanning from January 1, 2021, to December 31, 2022, aims to identify hosts and their earnings.
Following KRA’s request, the Irish Tax Authority (Irish Revenue) initiated an exchange of information request to obtain specific information about Kenyan hosts.
Airbnb, under legal obligations, has been formally asked by Irish Revenue to share this information with KRA.
Kenyan Airbnb users whose data is included in this exchange of information will receive notifications from Irish Revenue.
This move is expected to help KRA better understand the tax obligations of Airbnb hosts. It will ensure that tax revenues are appropriately collected from the platform.
The request from KRA is in line with a recent trend where the tax authority has been stepping up efforts to collect taxes from digital platforms.
