How To Avoid Betting Tax In Kenya

How To Avoid Betting Tax In Kenya

Kenyans are continuously looking for bookmakers that do not charge tax on their winnings. Most bookies charge up to 20% tax on all successful bets. The Kenya Revenue Authority requires all sportsbooks to fill their tax revenue as per government regulations. It is therefore hard to find a bookie without tax in the country. 1xBet is the only betting site for Kenyans, which has no tax. In this article, we will take you through the tax that Kenyans pay in online sportsbooks and the best places to bet.

In this article Keweb. co tries to answer the question by publishing the ways one can avoid betting tax in Kenya

Below are the most helpful ways to avoid betting tax in Kenya

What tax do Kenyans Pay for Online Sports Betting?

In June 2021, a 7.5 excise duty was signed into law under the Finance Act of 2021. This means that for every Ksh.100 wagered, KRA takes Ksh.7.5 regardless of whether the bettor wins or loses. In addition, players pay a 20% tax on all successful bets. For instance, if you win Ksh.1000, KRA takes Ksh.200, and you receive Ksh.800.

Is There a Way to Avoid Paying Tax on Sports Betting?

Unless you findĀ betting sites without tax in Kenya, you cannot avoid paying tax. All the necessary measures have been put in place to ensure you pay the excise duty and the 20% tax on your winnings. The only tax-free bookie in the country isĀ 1xBet. When playing on this betting site, you will receive the full amount of winnings, and your stake will not be reduced.

BETTING TAXES IN KENYA

Having gone through the dangers of signing up with betting sites without taxes in Kenya, let us now have a look at the betting taxes that are operational in the Kenyan market.

7.5% TAX ON STAKE

Betting sites in Kenya are mandated to impose a 7.5% tax on all stakes. In other words, all Kenyan bettors must pay a 7.5% tax on their stakes.

For example, if you stake Ksh. 1000, you will pay a betting tax of Ksh 75. Hence, your actual stake will be Ksh 925, while Ksh 75 goes to the government.

This betting tax at stake has been the subject of many debates and changes in the last few years.

Recently, some Kenyan lawmakers proposed that the tax should be increased to 20%, but that proposal wasn’t passed into law.

20% WITHHOLDING TAX ON WINNINGS

Not only do Kenyan bettors pay tax on stake, we also pay betting sites on our winnings!

So if we are fortunate enough to win our bets, we have to let go of some of that money to tax.

Yes, it is annoying, but it is what it is!

To be fair, the Kenyan government seems to be putting our taxes to good use.

The betting tax on winnings in Kenya is 20%.

So if you win, say, Ksh 10,000, betting sites in Kenya are mandated to withhold Ksh 2000 and remit to the Kenya Revenue Authority.