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Double tax agreement (DTA) between Kenya and SA

15 January 2015   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

Q: My client has acquired new business in Kenya and was told by his client in this country that there is a 20% withholding tax in Kenya, which must be withheld from my client from RSA. The withholding tax can be claimed in RSA. I have searched the international DTA’s between RSA and other countries worldwide and the one with Kenya is apparently signed but not ratified in RSA, meaning that it is not valid between the two countries. Is there another agreement between RSA and Kenya?

A: With regards to the query you are correct that the DTA with Kenya has not come into operation. You would therefore have to determine whether your client qualifies for the income tax section 6quat rebate in respect of the foreign taxes paid on foreign source income as a form of tax relief for the withholding taxes imposed. 

Disclaimer: Nothing in this query and answer should be construed as constituting tax advice or a tax opinion. An expert should be consulted for advice based on the facts and circumstances of each transaction/case. Even though great care has been taken to ensure the accuracy of the answer, SAIT do not accept any responsibility for consequences of decisions taken based on this query and answer. It remains your own responsibility to consult the relevant primary resources when taking a decision.



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