Kenya set to sign tax agreement with Saudi Arabia
By Frankline Sunday | September 27th 2021
Kenya and Saudi Arabia are seeking an agreement to ease the tax burden on their nationals.
The agreement drafted in 2016 will exempt resident individuals and companies in either country from paying income tax on earnings that have already been taxed in their home country.
“The Government of Kenya wishes to enter into an agreement for the avoidance of double taxation with respect to taxes on income with the Kingdom of Saudi Arabia,” Treasury Cabinet Secretary Ukur Yatani said in a public notice last week.
“As part of the process of engaging the public and stakeholders on this important agreement, we have posted the draft agreement onto the National Treasury website for purposes of receiving comments.”
The exemption will apply to Zakat, a form of tithe paid annually by Saudi individuals and companies within Islamic law. It will also apply to income tax including on natural gas investment.
In the case of Kenya, the agreement will apply to income tax chargeable in accordance with the provisions of the Income Tax Act Cap 470.
“The provisions of this agreement shall apply also to any identical or substantially similar taxes that are imposed by either contracting state after the date of signature of this agreement in addition to or in place of the existing taxes,” the draft agreement reads.
Kenya has 49 double-taxation agreements at various stages of negotiation or implementation.
Slight reprieve at the pump as State slashes fuel prices by Sh5
- Inside State's mega plan to revamp small lake ports
SHIPPING & LOGISTICS
- Taxman bets on digital market to beat Sh1.7tr goal
- Kenya tops in green financing in Africa - report
- Quickmart owner acquires Ruiru based flower farm
- Three reasons why your business is unprofitable