Kenya Canada DTA
Curated by Viva Africa Consulting Team
Double Taxation Agreement
Summary
This document is a Legal Notice for the Kenya-Canada Double Taxation Agreement (DTA) signed on April 27, 1983, as amended by a protocol signed on the same date. The DTA aims to avoid double taxation and prevent fiscal evasion with respect to taxes on income and capital. Key Provisions of the Agreement:
Taxes Covered (Article II): The DTA applies to income and capital taxes imposed on behalf of Canada and Kenya.
Existing taxes are Canadian income taxes ("Canadian tax") and Kenyan income taxes ("Kenyan tax").
Personal Scope (Article I): It applies to persons who are residents of one or both of the Contracting States (Kenya and Canada).
Permanent Establishment (Article V): The term means a fixed place of business and specifically includes a place of management, a branch, an office, a factory, a workshop, a sales outlet, and a building site or construction/assembly project existing for more than six months.
Taxation of Specific Income Types:
Dividends (Article X): May be taxed in both States, but the tax in the paying State shall not exceed 15% if the recipient company owns at least 10% of the voting shares, or 25% in all other cases.
Interest (Article XI): May be taxed in both States, but the tax in the State where it arises shall not exceed 15% of the gross amount, provided the interest is taxable in the other State. Interest paid to the government, central bank, or a wholly-owned agency of the other State may be exempt from tax.
Royalties (Article XII): May be taxed in both States, but the tax in the State where it arises shall not exceed 15% of the gross amount, provided the royalties are taxable in the other State.
Management and Professional Fees (Article XIV): May be taxed in both States, but the tax in the State where it arises shall not exceed 15% of the gross amount.
Elimination of Double Taxation (Article XXIV): Double taxation is avoided through a credit method in both Canada and Kenya.
Entry into Force (Article XXX): The agreement enters into force on the date of the later notification by either State of the completion of measures to give it the force of law.