Role of double taxation treaties in ensuring fairness, efficiency

KRA Commissioner General Humphrey Wattanga. [Courtesy]

In an increasingly interconnected global economy, the complications of taxation systems have increased, raising concerns over double taxation.

Double taxation is the state where multiple countries levy taxes on the same income or asset, therefore presenting a challenging obstacle for cross-border commerce. This financial burden not only discourages investment but also complicates tax compliance and distorts economic incentives, especially for emerging economies like Kenya.