BY JOHN MWANGI.
On 19th November 2015, the South Africa Government gazetted the Kenya-South Africa Double Taxation Agreement (DTA) making DTA effective.
The double tax Agreement (DTA) between Kenya and South Africa entered into force on 19th June 2015 and, therefore, shall apply in relation to transactions entered into from January 2016.
The DTA represents a significant development as South Africa represents the largest African investor in Kenya.
The DTA offers numerous incentive to Kenyan taxpayers dealing with South African companies such as reduced withholding tax rates.
The DTA,together with the recently passed commercial legislation(particularly the company Act and Special Economic Zone Act) which seek to improve the ease of doing business in Kenya,will serve to unlock tremendous economic opportunities that could catalyze growth in business and investment between Kenya and South Africa.
