This archive report was first published on 27 September 2021.
Published on September 27, 2021, Kenya and Saudi Arabia are in talks to sign a double-taxation agreement, aiming to reduce the tax burden on their citizens.
The agreement, drafted in 2016, proposes to exempt resident individuals and companies in either country from paying income tax on earnings that have already been taxed in their home country.
According to a public notice by Treasury Cabinet Secretary Ukur Yatani, the agreement will exempt Zakat, a form of tithe paid annually by Saudi individuals and companies within Islamic law, as well as income tax including on natural gas investment.
The agreement will apply to income tax chargeable in accordance with the provisions of the Income Tax Act Cap 470 in Kenya.
Kenya has 49 double-taxation agreements at various stages of negotiation or implementation.
