Friday, February 2, 2024 – Arabs may no longer be required to pay taxes in Kenya following the latest move by President William Ruto regarding double taxation.
This is after Ruto’s government concluded receiving comments
from Kenyans regarding the plans to establish a Double Tax Agreement (DTA) with
Jordan.
In the process being spearheaded by the National Treasury,
Kenya is now preparing a final draft to eliminate double taxation for income
tax.
Once completed, Jordan nationals with businesses in Kenya
will be exempted from paying income tax as they would have already paid in
their home country.
Kenyan nationals who have entrepreneurial ventures in Jordan
will be extended the same courtesy, as part of the DTA.
“Double taxation is a tax principle referring to income
taxes paid twice on the same source of income,” the Treasury explained.
Double taxation can happen at both corporate and individual
levels or in international trade where the same income is taxed in two
different countries, in this case, Kenya and Jordan.
According to the National Treasury, Kenya does not usually
pursue ending double taxation at corporate and individual levels but at the
international level.
DTA is borne out of the presumption that double taxation is
an unintended consequence of tax legislation.
“It is generally seen as a negative element of a tax system,
and tax authorities attempt to avoid it whenever possible,” the National Treasury
states.
The Kenyan DAILY POST
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