Kenya Inks Deal With Seychelles To Eliminate Double Taxation
NAIROBI (Xinhua) — The Kenyan government on Monday signed an agreement with the Seychelles to phase out double taxation on companies from the two countries.
Kenya’s Cabinet Secretary for Treasury Henry Rotich said the elimination of double taxation will promote flow of investments, trade and labor between the two countries.
“ Kenya has cordial relations with Seychelles that dates back to post independence era. We have many areas of cooperation ranging from tourism, fisheries and maritime security,” Rotich told journalists after signing the deal in Nairobi.
He said the new agreement to phase out double taxation on Kenyan and the Seychelles firms is part of a long-term bilateral cooperation.
“Through these agreements, Seychelles firms that have invested in Kenya will be exempt from two way taxation. Likewise, a Kenyan company that has invested in Seychelles will only be taxed profits made there,” Rotich said.
The East African nation had previously signed agreements to eliminate double taxation with several trading partners including South Africa ,Mauritius , Kuwait and Saudi Arabia.
Rotich stressed that removal of double taxation is embedded within regional trade blocs.
“Removing double taxation will incentivise companies to invest overseas and promote balance of trade. These agreements will strengthen cooperation in all areas of mutual interest,” Rotich said.
He added that there is political commitment in Kenya to phase out double taxation with the traditional and new trading partners.
Kenya and Seychelles have established solid partnership that has benefited both countries.
The Seychelles Minister for Foreign Affairs, Jean Paul Adam noted that his country regard Kenya as a strategic partner in diverse fields like tourism, aviation, agriculture and fisheries.
“ Kenya and Seychelles have a natural partnership. We believe Kenya has great potential that can be tapped to develop our economy,” Adam told journalists.
He added that Seychelles government has borrowed best practices from Kenya on the establishment of free trade zones.
Adam emphasized that elimination of double taxation will promote a two way foreign direct investments.
“ Seychelles companies believe Kenya has huge potential for business. Removal of double taxation will allow the two countries‘ private sector to flourish,” Adam said.
He revealed that Seychelles has signed an agreement with Mauritius to remove double taxation.
Currently, the balance of trade between Kenya and Seychelles is skewed in favor of the Island Nation.
Kenya’s Cabinet Secretary for Foreign Affairs and International Trade Amina Mohammed revealed that the government is addressing this trade imbalance through a raft of incentives.
“By 2012, Kenya ’s total exports to Seychelles stood at 2 million U.S. dollars while total imports from the country stood at 4 million dollars. The balance of trade at the moment is in Seychelles favor,” Mohammed told Xinhua.
Kenya exports agricultural, medical products and labor to Seychelles and imports fish products from the island nation.
Mohammed noted that the two countries have explored strategic areas of cooperation including aviation, tourism and fisheries sector.
“There is a significant number of Kenyans working in Seychelles as English teachers. Likewise, Seychelles citizens visit Kenya to shop or meet their relatives,” said Mohammed.