Double Tax Agreement Kenya

September 17, 2021 in Uncategorized by

Withholding tax paid abroad can only be invoked against Kenyan income tax if there is a unilateral or bilateral relief scheme. Kenya has only eleven bilateral tax treaties allowing for direct tax compensation (and double taxation exemption). Kenya has concluded double taxation treaties with the following countries: the Kenyan government published, on 26 June 2020, a subsequent DBA between Kenya and Mauritius, following the repeal of the DBA. The DBA is substantially similar to the initial DBA and provides for reduced rates of withholding tax on dividends, interest and royalties. The DCM also deals with other relevant issues, including the exchange of information between the two countries and the procedures of mutual agreement. Expenses, including management costs of executives and management overheads incurred by the MOU inside or outside the State in which it is located, are deductible in the calculation of the EP`s taxable profit. The DBA is expected to enter into force on 1 January of the year following the completion of the above-mentioned preliminary activities. Capital gains realized by a resident established in a Contracting State of the transfer of immovable property2 to another Contracting State may be taxed in the other Contracting State. Capital gains resulting from the sale of shares are taxable only in the country of residence, even if the value of the shares is due to immovable property located in the country of origin. c.

The remuneration shall not be borne by a person whom the employer has in the other State. Under Mauritian domestic laws, no withholding tax applies to interest paid to a non-resident who is not engaged in business in Mauritius (a) by a company holding a Global Business Licence (GBL) on its foreign income, in accordance with the Financial Services Act (ASL); (b) by a bank holding a banking licence under the Banking Act, provided that interest on the gross income from its banking operations is paid with non-residents and companies holding a GBL according to the ASL. Interest earned is also exempt in a number of other cases, for example. B interest received by a non-resident person of a Mauritian bank and interest on listed bonds and sucuks held by a non-resident company. Improving the relationship between KRA and our compliant customs officers In the absence of a stable seat, an MOU may be created when a person established in one Contracting State has, in the other Contracting State, an employed agent who has the general power to conclude contracts on behalf of the resident. This excludes situations in which the activity is limited to the purchase of goods or merchandise for the foreign company on whohalf it is acting. Residents of both States are now entitled to a foreign tax credit for income taxed in the other Contracting State. The exemption shall not exceed the income tax payable if the exemption had not been granted. KRA Headquaters, Times Tower, Haile Selassie Avenue, Nairobi Kenya Some of these agreements preferably provide for withholding tax rates.

However, in most cases, the above-mentioned normal tax rates apply. .