Kenya and China have reached and signed an accord to take away double taxation in the course of trade between both countries.
Standing on the basis of the agreement, both nation believe the agreement will help increase investment opportunities in their countries as trade between them has being rising consistently in recent years.
Kenya has signed 20 similar agreement with other nations and made it clear that trade with those partners has improved and so with that, it is now inviting Chinese investors in sectors like Agriculture, textile and energy. Kenya hopes this move will offset the current trade imbalance that stands at about $3.1billion against Kenya.
Kamau Thugge, Treasury principal secretary of Kenya, says the agreement will create certainty to taxpayers on the taxation of various cross border incomes derived from either country. He also added that it will also help in ensuring that there is no tax avoidance and evasion through tax planning as they seek to eliminate double taxation.
According to him this will also foster deeper relations between tax administration of the two countries through capacity building and exchange programmes to ensure that we transfer skills on taxation matters including custom matters.
News Correspondent at Core Magazine
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