The Tax Treaty between Kenya and South Africa was concluded in 2010 and ratified by South Africa in 2011. Kenya ratified the treaty in October 2014. South Africa is awaiting official diplomatic notification before the treaty comes into effect
The treaty represents a significant development between two of the economic powerhouses in Africa. South Africa represents the largest African investor in Kenya and this treaty also promotes South Africa as a possible intermediate holding company location for investments into Kenya. We highlight some of the notable clauses in the treaty.
Summary of withholding tax rates
We provide below a summary of the domestic withholding tax rates and the reduced rates under the treaty.
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.