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New KRA laws requiring betting companies to submit taxes every day by 1am have prompted a hasty effort to comply.
The rules permit the taxman to integrate with different betting systems to calculate taxes in real-time.
The action aims to rein in bad actors in the industry and increase accountability and transparency.
Before the second quarter of 2023, the Kenya Revenue Authority believes that all businesses would be in compliance.
The PesaBets-owned betting firm BETAFRIQ in Kenya has reviewed its procedures and given staff training on adhering to the new laws.
Even external auditors have been hired by the company to guarantee rules compliance.
“It is worth noting that the new regulations and tax remittance system have been implemented in an effort to increase transparency and accountability in the Kenyan betting industry,” the firm said in a statement.
“The industry is growing in Kenya and it is important for the companies to be compliant and contribute to the development of the country by paying taxes,” it added.
The business pleaded with betting companies present in Kenya to observe all local rules and legislation.
The rules permit the calculation of taxes in real time, including the 15% tax on wagering, gaming, and lotteries and the 20% withholding tax on wins distributed to clients.
The National Treasury has set a goal of earning Sh15 billion from the gambling industry this year. As a result, KRA hopes to get Sh41.1 million daily from betting companies.
Taxes were formerly paid after 30 days. The rules are a component of KRA’s new approach to boost tax compliance and raise money from the betting sector.
One of the innovations under the revenue administration, according to Chris Kiptoo, principal secretary of the National Treasury, is system integration.
“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,” he said.
On January 11, the PS spoke at a public hearing on the proposed budget for the medium-term period and the fiscal year 2023–2024.
The rules were put in place following a trial operation that connected its KRA systems with those of seven sports betting companies.
