Betting firms rush to comply with new tax regulations

Betting companies have rushed to comply with new KRA regulations that require the firms to remit taxes on a daily basis before 1am. The regulations allow the taxman to plug into various betting platforms for real-time computation of taxes.

The move aims at increasing transparency and accountability within the industry and taming rogue entities in the sector. The Kenya Revenue Authority hopes that all companies will be compliant before the second quarter of 2023.

BETAFRIQ, a Kenyan betting company owned by PesaBets, has reviewed its operations and trained its employees on compliance to the new rules. The firm has even engaged external auditors to ensure compliance with the regulations.

“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.

BETAFRIQ expressed hopes that all betting companies will join on tax amenability.

“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 firm urged betting companies operating in Kenya to ensure compliance with the laws and regulations of the country. The regulations allow real-time computation of taxes including the 15 per cent tax on betting, gaming, and lottery and the 20 per cent withholding tax on winnings paid out to customers.

The National Treasury has set a target to generate Sh15 billion from the betting sector in the current year. As a result, KRA aims to collect Sh41.1 million from betting firms on a daily basis. Before, taxes were paid after 30 days. The regulations are part of KRA’s new strategy to increase tax compliance and collect more revenue from the betting industry. National Treasury Principal Secretary Chris Kiptoo said integration of the systems was one of the reforms under the revenue administration.

“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.

The PS spoke at public hearings on the proposed 2023-2024 financial year and medium term period budget on January 11. The regulations were introduced after a pilot programme that linked its KRA systems with those of seven sports gaming firms.

Source: the-star.co.ke

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