Content creation is a fast growing industry in digital space embraced by youths, majorly on digital space. However the 2023 finance bill seems to focus much on this economical sector. Following the proposals by the parliament to revise the with holding tax from 15 percent to 5 percent, has brought limelight to content creation environment.
Now, the content creator is expected to pay 5 percent withholding tax directly to KRA and ensures that their taxpayment adds up to 30 percent by the end of the financial year.
Taking a scenario where the creator is hired for sh. 100, 000 then he will be paid sh. 95, 000 as 5, 000 is directly paid to KRA. Then the content creator will be expected to pay the remaining 25 percent to the tax collector after deducting his expenses.
As such much of the earnings will be going back to the government and these hustlers remain with nothing to make steps in life.
by: Popmanzap