LinkedIn, an American employment-oriented social network service company, has increased membership fees and rates that viewers pay to access premium services by up to Sh 1,400 ($12.03) per account
This comes after Kenya introduced a 16 percent value-added tax (VAT) on digital transactions for foreign companies through the Finance Act of 2019, according to Business Daily.
“We want to provide you with an important tax update related to Kenya tax that will impact your LinkedIn purchase(s). Kenya has introduced tax at 16 percent on e-Services. In order to comply with these laws and regulations, this tax will be added to your current LinkedIn purchase starting on May 11, 2022,” LinkedIn said in a communique to its members.
“If you add a valid business PIN ID to your profile, LinkedIn will not charge you tax. However, please note, if a valid Kenya tax number has been provided, this will be accepted by LinkedIn as notification of your responsibility to account for VAT under the reverse charge mechanism,” it said.
LinkedIn currently offers four packages:
- Career
- Business
- Sales navigator core
- Recruiter lite
Individuals and companies that use Facebook to advertise are also paying the 16 percent VAT as Kenya seeks to collect loads of money through e-commerce.
LinkedIn helps many job seekers easily find job opportunities. Users upload their work experiences and education history on their profiles and the platform’s algorithm will recommend jobs that align with their profile. It also helps recruiters find potential job candidates, as well as connect users to relevant connections.
LinkedIn offers a premium service where companies, professionals from different sectors, and job seekers pay up to $119.95 per month to access content and place job openings. Users who cannot pay this premium fee can still connect with people and find jobs on their free accounts.
By Zintle Nkohla
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