Thursday, May 23, 2024

Visa Awareness: Countries Kenyans Should Check for Double Taxation Before Applying


  • Kenya signed its first Double Taxation Settlement with Zambia in 1968. 
  • 14 Nations Have Signed DTAs with Kenya and are in Power.
  • 15 Nations Are Nonetheless Contemplating the DTA. 

Since taking workplace, President William Ruto’s administration has been within the means of overhauling the tax regime by eliminating double taxation for Kenyans within the Diaspora.

The tax precept includes paying taxes twice on the identical supply of earnings. Because of this one is taxed in two totally different nations; their nation of residence and residential nation and might happen on the company degree and/or at a person degree.

In April, President Ruto ordered the Ministry of Treasury to overtake the nation’s taxing area to allow a greater working surroundings for these working overseas.

“All it is advisable do is to file your return and state what you could have paid and we provides you with a tax credit score for what you could have paid in order that you don’t pay taxes twice,” President Ruto said throughout a gathering with Kenyans residing in Ghana on April 2, 2024.

As such, the Nationwide Treasury has been spearheading the method, in search of to remove double taxation with neighbouring and world nations.

Not too long ago, the Treasury introduced the method of participating with the Republic of Belarus to strike a Double Taxation Settlement (DTA) to forge stronger ties between the 2 nations.

DTAs are worldwide agreements to allocate taxing rights between the mentioned events to keep away from double taxation on the worldwide degree. offers a breakdown of double taxation and nations that Kenya has both concluded or is within the means of eliminating double taxation.

Nations Whose DTAs are In Power With Kenya

Canada, Denmark, France, Germany, Iran, Korea, Norway, Qatar, Seychelles, South Africa, Sweden, United Arab Emirates (UAE), United Kingdom and Zambia.

What This Means

Because of this Kenyans working in these nations can conduct enterprise with out worrying about being taxed twice.

Nations Who Have Concluded Agreements However Not Signed

Botswana, Nigeria, Portugal, Saudi Arabia, Singapore, Thailand, Turkey

What This Means

Kenyans residing in these nations nonetheless face double taxation till Kenya and the host nation formally signal the settlement.

Signed (Not in Power)

China, East African Group, Italy, Kuwait, Mauritius, Netherlands

What This Means

Kenyans residing in these areas nonetheless face double taxation because the host nation has but to implement the settlement.

Beneath Consideration

Algeria, Cameroon, Democratic Republic of Congo (DRC), Ethiopia, Ghana, Ivory Coast, Jordan, Macedonia, Malawi, MozambiqueRussia, Senegal, South Sudan, Sudan, Zimbabwe.

What This Means

Kenya and these nations are at present participating in talks relating to the DTA although nothing has been formalised. 

Benefits of Eliminating Double Taxation for Companies

This presents a chance for companies to reinvest extra of their income resulting in growth, innovation, and job creation.

Eliminating double taxation reduces the tax burden on enterprise homeowners thus reducing their bills.

Nations that implement DTA grow to be engaging locations for international buyers, resulting in international direct funding and thus stimulating financial progress.

Double taxation presents a posh system for companies working in a number of jurisdictions therefore eradicating the precept simplifies tax compliance.

DTAs additionally create a beneficial surroundings for companies to be internationally aggressive. 

President William Ruto (second left) with Commerce CS Rebecca Miano (left) and different regional leaders in Bujumbura.


The Transient


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