This document is the Convention Between the Government of the Republic of Kenya and the Government of the Kingdom of Denmark for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital.Key Dates:

• Date of Conclusion: 13 December 1972

• Entry into Force: 15 March 1973

• Effective Date: 1 January 1972

Taxes Covered (Article 2):

• In Denmark (Danish tax): Ordinary income tax to the State, old age pension contribution, seamen tax, special income tax, tax on dividends, communal income taxes (ordinary municipal income tax, church tax, municipal income tax to the County), and capital tax to the State.

• In Kenya (Kenyan tax): Income tax and graduated personal tax.

Definitions (Article 3):

• Kenya includes the Republic of Kenya and designated areas outside its territorial waters concerning the Continental Shelf.

• Denmark means the Kingdom of Denmark, including the continental shelf, but excludes the Faroe Islands and Greenland.

• Competent Authority: For Kenya, the Minister for Finance or his authorised representative; for Denmark, the Minister of Finance or his authorised representative.

Taxation of Specific Income:

• Dividends (Article 10): May be taxed in the state of residence of the company paying them, but the tax shall not exceed 20% if the recipient company owns at least 25% of the voting shares for six months, and 30% in all other cases.

• Interest (Article 11): May be taxed in the state where it arises, but the tax shall not exceed 20% of the gross amount. However, interest paid to the Government, Central Bank, or a wholly-owned agency of the other state (including Denmark's Industrialization Fund for Developing Countries) is exempt.

• Royalties (Article 12): May be taxed in the state where they arise, but the tax shall not exceed 20% of the gross amount.

• Management or Professional Fees (Article 14): May be taxed in the state where they arise, but the tax shall not exceed 20% of the gross amount of management fees.

Elimination of Double Taxation (Article 25):Both Kenya and Denmark provide for a tax credit method for income and capital that may be taxed in the other Contracting State. The term "Kenyan tax paid" is deemed to include amounts not paid due to certain Kenyan tax incentives for economic development, such as investment deductions.