The withholding tax paid abroad can only be invoked against Kenyan income tax in the case of unilateral or bilateral relief. Kenya has only 11 bilateral tax treaties that allow direct tax compensation (and double taxation relief). Look at tax rates, the latest tax news and information on double taxation agreements with our specialized online resources, guides and useful links. On 26 June 2020, following the repeal of the DBA, the Kenyan government created a subsequent DBA between Kenya and Mauritius. The DBA is very similar to the original DBA and provides for reduced withholding rates on dividends, interest and royalties. The DBA also addresses other relevant issues, including the exchange of information between the two countries and the procedures of the reciprocal agreement. Kenya has dual tax evasion agreements with the following countries: Double Taxation Conventions Details of the Kenyan Ministry of Finance`s double taxation agreements. Click on the legal opinion accompanying the full text of the agreement. Tax Information Guide: Africa`s Leading Economies 2018 Overview of the Tax and Investment Environment in 44 African countries, including Africa. The guide contains income tax rates, withholding tax, a list of double taxation agreements, information on other taxes, investment incentives and important business data. Published by Deloitte in May 2018. In March 2019, the High Court of Kenya annulled an agreement on the prevention of double taxation (DBA) between Kenya and Mauritius.
Here is an EY Tax Insights article with more details on the nullity of the DBA. Interest payments are deductible when PE engages in banking activities. Conversely, an MOU operating in banking operations is taxable PE income on the interest received by a bank-owned MOU. A fixed location does not constitute an MOU if the nature of the activities carried out by the fixed place is a function of assistance or preparation. The execution of the DBA awaits the exchange of instruments and any State party that informs each other of the completion of the necessary activities. Tax treaties and related documents between the UK and Kenya. Kenyan: Global Tax Summary Detailed Instructions on PwC`s Merger Process, which addresses a wide range of corporate and personal tax issues, with insights into important developments and quick diagrams showing the most important tax rates and maturities in progress. Previous 2010 corporate tax expenses are also available.