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EARNINGS: National Treasury has issued a general notice seeking public comments on the pending income tax treaties with Barbados and Singapore, which were signed on December 7, 2019 and June 12, 2018, respectively.

Cabinet Secretary Ukur Yatani has asked those submitting such comments to do so in writing by August 17, if they are to be considered.

He hopes the comments, also referred to as public participation, would help ensure that income earned in any of the three countries is not subjected to double taxation.

“The government of Kenya wishes to enter into respective agreements for the avoidance of double taxation with respect to taxes on income with Singapore and Barbados,” Yatani said in a statement.

The taxation treaty between Kenya and the two nations will be applicable on income tax and corporate tax.

Corporate tax rate currently applicable in Kenya is 30 per cent in the case of resident corporations such as limited liability companies – while a non-resident company with a permanent establishment in Kenya is taxed at 37.5 per cent.

An expatriate, who is resident in Kenya is liable to pay income tax – often charged at 30 per cent.

An expatriate, who is not resident in Kenya, but who is employed by a person who is resident in Kenya or by a permanent establishment of a nonresident is also liable to income tax.