Abacus is the result of over 10 years market experience and is licensed as a data vendor by the Nairobi Securities Exchange
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| Email: | hello@abacus.co.ke |
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| Tel: | +254 792 753 774 |
Double taxation is a taxation principle referring to income taxes that are paid twice on the same source of earned income. It occurs when the same transaction or income source is subject to two or more taxing authorities.
Double taxation agreements on the other hand refer to agreements between governments of two countries stating that the taxes one pays on dividends in one country may be deducted from one's income from foreign dividends in the other country. This is especially important for multinational corporations and individuals who have overseas interests when one or both countries tax worldwide income.
The problems that double taxation presents have long been recognized, and with the constantly expanding integration of domestic economies into a world economy, countries have undertaken several measures to reduce the problem of double taxation. An individual country can offer tax credits for foreign taxes paid, or outright exemptions from taxation of foreign-source income.
According to a double taxation agreements document published by the Kenya Revenue Authority (KRA), the Government of the Republic of Kenya has so far concluded Double Taxation Agreements (DTA’s) with a number of countries and is currently expanding the treaty network. DTA’s are important since they help in alleviating double taxation where business is conducted in different tax jurisdictions and also assist tax administrations in preventing fiscal evasion.
The document lists the following DTA’s as ones that have been ratified and are therefore in force. The Legal Notices contain the full text of the conventions.
Other DTA’s have been signed but have however not been ratified by all the Contracting States and are therefore in NOT in force. they are listed as follows:-
The following DTA’s are at different stages of negotiation. For those that are in force, but under review, the existing DTA’s continue to operate until the review is complete. This will be intimated through a Legal Notice revoking the existing one.
Abacus is the result of over 10 years market experience and is licensed as a data vendor by the Nairobi Securities Exchange
| Email: | hello@abacus.co.ke |
|---|---|
| Tel: | +254 792 753 774 |