Kenya, Portugal sign deal on removal of double taxation
Kenya and Portugal on Tuesday signed an agreement for avoidance of double taxation.
The main objective of the Agreement on the Avoidance Double Taxation is to eliminate double taxation of income or gains arising in one country and paid to residents of the other country.
This will create a conducive environment for investments and trade in goods and services between the countries by removing uncertainties on taxation occasioned by having two different jurisdictions at play.
Other benefits include facilitation in tax administration through sharing of information by tax authorities of the two countries. This will go a long way in checking tax evasion.
The deal was signed in Portugal during the European-African Forum, an action-oriented platform geared towards fostering stronger collaboration between Europe and Africa. The theme of the meeting was ‘Crafting Coalitions for Change’.
African and European leaders from government, business and civil society attended the forum.
Kenya has signed with countries including the US and Switzerland in the last few days.
With Switzerland, the country signed an agreement for the return of billions of shillings in corruption proceeds following talks between Presidents Uhuru Kenyatta and Alain Berset.
With the US, Kenya signed deals worth Sh10 billion at the US-Kenya conference in Nairobi.
The conference organised by the US Chamber of Commerce was aimed at interrogating Uhuru’s Big Four Agenda for investment opportunities. The key points are affordable housing, food security, universal healthcare and manufacturing.