This document, the "DOUBLE TAXATION RELIEF (QATAR) NOTICE, 2015," is an agreement between the Government of the Republic of Kenya and the Government of the State of Qatar for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.Key Provisions:

• Taxes Covered: The agreement applies to taxes on income, including taxes on total income, elements of income, gains from the alienation of property, and taxes on total wages/salaries paid by enterprises.

  • Existing taxes are: Income tax chargeable under the Income Tax Act, Cap 470 in Kenya ("Kenyan tax"), and taxes on income or profits in Qatar ("Qatari tax").

• Dividends: Dividends paid to a resident of the other Contracting State may be taxed in that other state and also in the state of the company paying the dividends. The tax charged in the company's state shall not exceed:

  • 5% of the gross amount if the beneficial owner is a company (not a partnership) holding at least 10% of the capital.

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

  • Dividends paid by a company which is a resident of a Contracting State shall not be taxable in that State if the beneficial owner is the other Contracting State, its political subdivisions, local authorities, statutory bodies, Central Bank, or any wholly owned entity.

• Interest: Interest arising in a Contracting State and paid to a resident of the other State may be taxed only in that other State. However, it may also be taxed in the state where it arises, but the tax charged shall not exceed 10% of the gross amount if the beneficial owner is a resident of the other State.

  • Interest is not taxable in the Contracting State where it arises if the beneficial owner is the other Contracting State, its political subdivisions, local authorities, statutory bodies, Central Bank, or any wholly owned entity.

• Royalties: Royalties arising in a Contracting State and paid to a resident of the other State may be taxed in that other State and also in the state where they arise, but the tax charged shall not exceed 10% of the gross amount.

• Permanent Establishment (PE): A PE includes a place of management, a branch, an office, a factory, a workshop, sales outlets, a farm, or a mine. It also includes a construction, assembly, or installation project, or related supervisory activity, lasting more than six months, or the furnishing of services (including consultancy) for periods aggregating more than six months.

• Shipping and Air Transport: Profits from operating ships or aircraft in international traffic are taxable only in the Contracting State where the place of effective management is situated.

• Effective Date: The agreement shall enter into force on the date of the later of the notifications that required procedures have been completed. The provisions take effect from the first day of January of the calendar year immediately following the year in which the Agreement enters into force.