This document, the Double Taxation Relief (United Arab Emirates) Notice, 2016, sets out the arrangements between the Governments of Kenya and the United Arab Emirates to afford relief from double taxation and prevent fiscal evasion with respect to taxes on income. The agreement was signed on November 21, 2011.Taxes and Persons Covered:

• The Agreement applies to residents of one or both Contracting States (Kenya and the UAE).

• It covers existing taxes, which are the income tax and corporate tax for the UAE ("United Arab Emirates tax") and the income tax chargeable under the Income Tax Act, Cap. 470, for Kenya ("Kenyan Tax").

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

Withholding Tax Limits on Certain Income:

• Dividends: The tax charged to the beneficial owner shall not exceed 5% of the gross amount of the dividends. Exemptions apply if the beneficial owner is the Government, Central Bank, or agreed-upon governmental agencies/financial institutions of the other state.

• Interest: The tax charged to the beneficial owner shall not exceed 10% of the gross amount of the interest. Exemptions apply if the beneficial owner is the Government, Central Bank, or agreed-upon governmental agencies/financial institutions of the other state.

• Royalties: The tax charged shall not exceed 10% of the gross amount of the royalties if the beneficial owner is a resident of the other Contracting State.

Key Provisions:

• Permanent Establishment (PE) includes a place of management, a branch, an office, a factory, a workshop, and, subject to time limits, construction projects or the furnishing of services. Activities of a preparatory or auxiliary character are generally excluded from forming a PE.

• Shipping and Air Transport Profits in international traffic are taxable only in the State where the place of effective management is situated, with a provision for reduction of tax in the other State.

• Remuneration for Government Service is generally taxable only in the paying State.

• Professors, Teachers, and Researchers may be exempt from tax in the host state for up to four years for teaching or research, provided the remuneration is from outside the host state and subject to tax in the other state.

Entry into Force and Termination:

• The Agreement enters into force on the date of the last notification of completion of legal procedures.

• It remains in force indefinitely but can be terminated by written notice given by 30th June of any calendar year starting five years after entry into force.