This document is the Agreement Between the Government of the Republic of South Africa and the Government of the Republic of Kenya for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (DTA).Key Details and Scope:

• Date Signed: 26th day of November 2010, at Nairobi.

• Date of Entry into Force: 19 June 2015.

• Persons Covered (Article 1): The Agreement applies to persons who are residents of one or both Contracting States.

• Taxes Covered (Article 2): The Agreement covers taxes on income imposed on behalf of a Contracting State or its political subdivisions or local authorities.

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

  • In South Africa: The normal tax, secondary tax on companies, withholding tax on royalties, and the tax on foreign entertainers and sportspersons.

Taxation Limits (Withholding Tax Rates):

• Dividends (Article 10): May be taxed in the source state, but the tax shall not exceed 10 per cent of the gross amount if the beneficial owner is a resident of the other Contracting State.

• Interest (Article 11): May be taxed in the source state, but the tax shall not exceed 10 per cent of the gross amount if the beneficial owner is a resident of the other Contracting State.

• Royalties (Article 12): May be taxed in the source state, but the tax shall not exceed 10 per cent of the gross amount if the beneficial owner is a resident of the other Contracting State.

Other Income Provisions:

• Business Profits (Article 7): Taxable only in the state of residence unless the enterprise carries on business through a permanent establishment in the other state.

• Shipping and Air Transport (Article 8): Profits from the operation of aircraft in international traffic are taxable only in the state of residence. Profits from the operation of ships in international traffic may also be taxed in the other state, but the tax charged shall be reduced by 50 per cent.

• Elimination of Double Taxation (Article 23): Both Kenya and South Africa will allow a deduction for the tax paid in the other State, up to the amount of tax attributable to that income in their own state.