Meta has updated its terms to allow Facebook to share business statistics with tax authorities effective January 3, 2023.
Meta Platforms owns Facebook, WhatsApp and Instagram.
The new update will hand the taxman powers to monitor businesses and make money using the social media platform.
Here, entrepreneurs running their businesses on Facebook will have to consent for sharing of their dealings to a government body.
This includes, advertising contents and all information associated with the publicity on Facebook. This way, Meta insists that the move would assist in a lawful investigation.
The move has been interpreted as a boost for Kenya Revenue Authority (KRA) which is targeting KSh 13.9 billion from the Income Tax (Digital Service Tax) over the next three years.
The digital tax was rolled-out in January 3, 2021 in its latest push to bring more taxpayers into its net. KRA was eyeing businesses and persons selling services and goods online.
“The uptake of Digital Service Tax (DST) has been incredibly positive by both resident and non-resident persons operating in the digital market,” KRA said.
All businesses selling services online will be required to pay a flat tax of 1.5 per cent on the value of goods supplied and sold online.
This also includes services offered through digital platforms.
Services and goods targeted under the taxes include e-books and movies, music, and games, tickets for live events and theatres, subscription-based media including news, magazines and digital content.
