The Level of Deepening and Classification of Cryptocurrency Transactions and Taxation in Kenya
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Date
18-08-21
Authors
Miriti, Nelly
Nekesa, Marion
Journal Title
Journal ISSN
Volume Title
Publisher
Kenya School of Revenue Administration
Abstract
This study will seek to determine the level of deepening and classification of cryptocurrency
transactions and taxation in Kenya. Cryptocurrencies present a non-tax revenue base for the
revenue authority; however, no existing tax laws are guiding the treatment of cryptocurrencies.
The main objective of this study will be to find out the effect of classifications of
cryptocurrency transactions on the tax laws and regulation in Kenya. The study will employ a
qualitative exploratory research design and will use primary data collected from tax consultants
within the Kenya Revenue Authority and the big audit firms in Kenya by conducting interviews.
The data collected from the interviews has been analyzed by the content analysis method. The
study has established that there is a knowledge gap amongst the professionals on the use,
accounting, and taxation of cryptocurrency. It is also evident that cryptocurrencies can be
classified as intangible assets, inventory, or digital currency rather than money or cash. The
circumstances and nature of the transactions affect the taxation of the income generated from
cryptocurrency transactions. The study has also established there is need for regulation of
cryptocurrencies in the aspects of accounting guidelines, taxation framework and legality of
the activities associated with cryptocurrency.
Description
Keywords
cryptocurrency, taxation, tax laws
Citation
Miriti, N., & Nekesa, M. (2021). The Level of Deepening and Classification of Cryptocurrency Transactions and Taxation in Kenya. African Tax and Customs Review, 4(1), 23. Retrieved from https://atcr.kra.go.ke/index.php/atcr/article/view/75