This document is the Double Taxation Relief (Netherlands) Notice, 2017, containing the Convention between the Government of the Republic of Kenya and the Government of the Kingdom of the Netherlands for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, signed on 22nd July, 2015. The arrangements shall have effect in relation to income tax under the Income Tax Act (Cap. 470).Taxes Covered (Article 2):The Convention applies to taxes on income imposed on behalf of a Contracting State or its political subdivisions or local authorities.

• Netherlands Tax includes income tax (de inkomstenbelasting), wages tax (de loonbelasting), company tax (de vennootschapsbelasting) including the Government share in the net profits of natural resources exploitation, and dividend tax (de dividendbelasting).

• Kenyan Tax is the income tax chargeable in accordance with the Income Tax Act, Cap. 470.

Taxation of Specific Income Types (Summary):

• Dividends (Article 10): May be taxed in both states, but tax charged in the company's resident state shall not exceed 10% of the gross amount if the company is a Kenyan resident, and 15% if the company is a Netherlands resident. Tax is generally not levied by the company's resident state if the beneficial owner is a company holding at least 10% of the capital or a recognized pension fund of the other state.

• Interest (Article 11): May be taxed in the state where it arises, but tax charged shall not exceed 10% of the gross amount if the beneficial owner is a resident of the other state. Exemptions apply for interest paid to the government, local authority, central bank, or statutory body, or if the interest is guaranteed, insured, or subsidized by a Contracting State, or paid to a recognized pension fund.

• Royalties (Article 12): May be taxed in the state where they arise, but tax charged shall not exceed 10% of the gross amount if the beneficial owner is a resident of the other state.

• Business Profits (Article 7): Taxable only in the enterprise's state, unless business is carried on through a permanent establishment (PE) in the other state. If a PE exists, only the profits attributable to it may be taxed in the other state.

• Shipping and Air Transport (Article 8): Profits from international traffic are taxable only in the state where the place of effective management is situated. Exceptionally, profits from ship operation in the other state may be taxed at a maximum of 5% of the full amount received, with the chargeable tax reduced by 50%.

Entry into Force (Article 30):The Convention shall enter into force on the last day of the month following the month after the later date on which the respective Contracting Parties have notified each other in writing that the formalities required by their law have been complied with.