The document is the Double Taxation Relief (Mauritius) Notice, 2012, issued under Kenya's Income Tax Act (Cap. 470). It declares that the arrangements made between Kenya and Mauritius, set out in the schedule and signed on May 7, 2012, for the avoidance of double taxation and fiscal evasion with respect to taxes on income and on capital, shall have effect in relation to income tax under the Act.Key Provisions of the Agreement (DTA):

• Taxes Covered (Article 2):

  • In Mauritius: the income tax.

  • In Kenya: the income tax charged in accordance with the Income Tax Act, Cap 470.

  • It also applies to any substantially similar taxes imposed after the date of signature.

• Dividends (Article 10): Tax on dividends shall not exceed:

  • 5% of the gross amount if the beneficial owner is a company (other than a partnership) holding directly at least 10% of the capital of the company paying the dividends.

  • 10% of the gross amount in all other cases.

• Interest (Article 11): Tax on interest shall not exceed 10% of the gross amount if the beneficial owner is a resident of the other Contracting State. Certain interest paid to the government, a political subdivision, or a local authority, or wholly owned institutions, is exempt.

• Royalties (Article 12): Tax on royalties shall not exceed 10% of the gross amount if the beneficial owner is a resident of the other Contracting State.

• Elimination of Double Taxation (Article 22): Both Kenya and Mauritius use the credit method to eliminate double taxation. For Mauritius, the tax payable in Kenya is deemed to include any tax reduced or waived by Kenya to promote economic development.

• Entry Into Force (Article 28): The Agreement enters into force on the date of the later notification by both parties of the completion of required procedures. Its provisions apply on income for any income year beginning on or after the first day of January next following the entry into force date.