Kenya signs tax deal with S. Korea

President Uhuru Kenyatta meets South Korean President for trade talks (Photo: Courtesy)

The tax and investment treaty, which has come as a result of talks between a delegation from the Treasury and representatives from South Korea, seeks to avoid double taxation on the earnings of private companies with operations in both Kenya and South Korea.

In addition, shareholders in such companies will be exempted from the taxes.

“Kenya has ratified various double taxation treaties in a bid to make herself a choice investment hub. (The country) has cemented her relationship with the Republic of South Korea by ratifying a double taxation relief treaty between the two countries by way of legal notice No217 of 2017,” read a communication from the Treasury.

Kenya imposes a 20 per cent tax on share earnings by private companies. Under the agreement, however, South Korean companies will be taxed at eight per cent.