Double Taxation Agreement Between Kenya And Mauritius

For his part, the President of the Republic of Kenya, Uhuru Kenyatta, said that this important historic state visit would strengthen relations between the two countries and that through this enhanced cooperation, the two countries will have the enormous opportunity to cooperate, establish strategic cooperation and achieve productive results. Home Newsroom ” ” New tax treaty between Mauritius and Kenya! All parties are now waiting for the new DBA to be presented to the Kenyan Parliament in the form of a definitive reference to the Kenyan Gazette within seven days of its publication. We expect that the new DBA, as soon as it becomes law and effective, will further stimulate economic trade and trade between the two countries. On 30 June 2020, the Secretary of the Cabinet of National Finance and Planning welcomed the Double Taxation Convention (DBA) signed on 10 April 2019 between Kenya and Mauritius. The Kenyan government issued a subsequent legal memo removing the legal reference to the Double Taxation Convention (DBA) between Kenya and Mauritius. Here is an EY Global Tax Alert that summarizes the main provisions of the DBA that has just been revoked. Kenya has published a revised convention on double taxation between Kenya and Mauritius in the form of a 2020 legal communication No. 114, published in the Official Journal on 30 June 2020. Last March, the Kenyan High Court cancelled the previous contract after invalidating an earlier notice (No.

59 of 2014). In March 2019, the High Court of Kenya annulled an agreement on the prevention of double taxation (DBA) between Kenya and Mauritius. Here is an EY Tax Insights article with more details on the nullity of the DBA. Representatives of the governments of Mauritius and Kenya signed an income tax agreement in April 2019 to avoid double taxation. A treaty protocol has also been signed. In a statement to the press, Prime Minister Jugnauth stressed that President Kenyatta`s visit was a testament to the excellent relations that the two countries share. He also said that the DBA and IPPA would promote greater economic cooperation and investment protection between the two countries and said that the signed agreements would stimulate economic development and create employment opportunities. The most important of these agreements was the DBA, which will allow the two countries to resolve the administrative breakdown that occurred in Kenya earlier this year, when the High Court of Kenya annulled the former Mauritian DBA on 15 March 2019 following a petition from the Tax Justice Network – Africa to the court. This is because, in the seven days of the session following the publication of the Kenyan Gazette, the Kenyan cabinet secretary for finance failed to issue to the National Assembly the legal opinion that would have received the effect of the DTA before the National Assembly under Kenya`s Legal Instruments Act in 2013. On 26 June 2020, following the repeal of the DBA, the Kenyan government created a subsequent DBA between Kenya and Mauritius.

The DBA is very similar to the original DBA and provides for reduced withholding rates on dividends, interest and royalties. The DBA also addresses other relevant issues, including the exchange of information between the two countries and the procedures of the reciprocal agreement. The agreements were ratified by Mauritius at the end of 2019. Kenya must complete its ratification procedures before the treaties can enter into force.

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