Kenya to tax gambling winnings from 2012
Kenya is to impose a 20% withholding tax on gambling winnings from next year, in addition to the current 16% tax on gaming companies.
Kenya Revenue Authority has announced that it will tax gambling winnings from next year, according to the Daily Nation newspaper.
From 2012 gambling winnings will be subject to a 20% withholding tax as the government looks to bring more people into the tax paying bracket, by identifying areas where people are earning but not being taxed. This is in addition to the current 16% tax on gaming companies, which had previously left winners untaxed.
The move has been met with opposition from the Association of Gaming Operators Kenya (AGOK), who have complained to the parliament budget committee about the impracticality of the decision to tax casinos rather than actual players.
A previous attempt to impose a 5% excise duty on gambling failed, after AGOK members went to court to have the tax suspended.