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German-based Kenyan Tiktoker Nyako faces taxation ultimatum over TikTok earnings

Nyako, the popular Kenyan content creator based in Germany, known for her exceptional TikTok content, has revealed that she’s been issued an ultimatum to disclose her earnings from the video-sharing platform.

Nyako has garnered a substantial following for her unique approach to content creation and engaging live videos, making her a standout figure among Kenyan users on TikTok.

During a TikTok live session, Nyako disclosed that she had received a demand letter requiring her to report and pay taxes on the income she receives from TikTok gifts.

In addition, she shared that authorities have also requested her to provide a daily breakdown of her earnings from the platform.

Displaying the official letters from the German government on her popular TikTok channel, Nyako expressed her concerns about taxation matters, echoing the sentiments of fellow Kenyans who also shared their frustrations.

“I have been given until 30 November to declare gifts to the Government. How much gift do I get? I have been given an ultimatum of 30 November 2023, to declare TikTok gifts,” Nyako stated, displaying the document from the German authorities.

She went on to share another aspect of the tax inquiry, saying, “Alafu barua ingine is a letter to find out how much I earn on TikTok every day.

From Monday to Sunday,” as she showcased the tables that required her to fill in detailed information about her daily earnings.

“This is a letter from the Government. Yes, I will send it back,” Nyako affirmed.

On TikTok, “gifts” refer to virtual items that users can purchase and send to their favorite creators during live streams or as a way to show support and appreciation.

These gifts are often represented by various animations or icons and have different values in terms of “coins” or other in-app currencies.

Creators usually convert these virtual gifts into actual money, which is one way they can earn income on the platform.

The specifics of how gifts work and their monetary value can vary based on the platform’s policies and the country of the user.

In some countries, these virtual gifts may be classified as income and become subject to applicable taxation.

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