According to a capital markets amendment bill reportedly sponsored by Kenyan lawmaker Abraham Kirwa, cryptocurrency holders in the country will be obliged to pay taxes on gains. In addition, the bill (if passed into law) would require crypto holders to furnish Kenya’s Capital Markets Authority with details such as “the amount of proceeds from the transaction, any costs related to the transaction, and the amount of any gain or loss on the transaction.”
Sharing Crypto Transaction Details With Regulator
As per a capital markets amendment bill reportedly before the Kenyan parliament, individuals holding cryptocurrencies might in the future be required to pay taxes commensurate with the gains made, a report has said. Kenyans holding cryptocurrency for a period exceeding twelve months will be required to pay capital gains tax while those holding for less than a year are obliged to pay income tax.
Besides Kenyan crypto holders, the amendment bill also seeks to introduce taxes that target cryptocurrency exchanges and digital wallets. According to a Business Daily report, the amendment bill is being sponsored by Abraham Kirwa, a member of parliament (MP) for the Mosop constituency.
In addition to proposing taxes, the bill proposes that persons holding digital assets must share details concerning how and when the crypto was acquired with Kenya’s Capital Markets Authority (CMA).
“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,” the amendment bill reportedly states.
Responsibilities of Persons Dealing With Crypto
Meanwhile, Kirwa is quoted in the report stating that his bill seeks to “provide for specific provisions to govern digital currency transactions in Kenya.” The bill also proposes what the MP defines as the “responsibilities of persons or businesses trading in digital currencies, [providing] for its taxation, ownership, and [providing] for [the] promotion of innovation in this area.”
As has been reported by Bitcoin.com News previously, Kenya has one of the highest concentrations of cryptocurrency holders in Africa and is one of the biggest crypto markets on the continent. Despite this embrace of crypto by Kenyans, authorities in the country including Central Bank of Kenya governor Patrick Njoroge, have repeatedly railed against the use of privately issued digital currencies.
However, the Kenyan lawmaker’s bill appears to acknowledge that the warnings by Njoroge and others have failed to dissuade Kenyans from using or holding cryptocurrencies. Therefore, in addition to the above-mentioned proposals, the bill also seeks to compel persons dealing with cryptos to maintain and share records of all activities relating to digital currency transactions.
“A person who trades in digital currencies shall keep records of digital currency transactions, including purchases and sales, [and] pay taxes on any gains that are made from transactions in digital currencies in accordance with the applicable laws,” the bill reportedly states.
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Source: Bitcoin News