Kenya, Singapore sign double taxation agreement
The governments of Kenya and Singapore have signed two new agreements that are expected to pave way for mutual trade relations between the two states.
The first agreement on the Avoidance of Double Taxation (DTA) is expected to eliminate double taxation of income arising in individual states and paid to residents of the other country.
Speaking during the signing of the agreements, National Treasury cabinet secretary Henry Rotich said the treaty will be critical in unlocking the trade constraints between the two nations even as government seeks to draw benefits from the improved trade relations with the economic giant.
“The agreement 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,” Mr Rotich said.
The two countries also signed the Agreement on the Promotion and Protection of Investments (IPPA) which sets out the respective rights and obligations of cross investments between Kenya and Singapore.
This is expected to stimulate the flow of FDI from Singapore to Kenya and vice versa.
The CS added that he expected the agreement to provide for greater investment opportunities for both Singaporean and Kenyan investors as part of the government driven agenda to pave way for foreign nations to participate in Kenya’s development agenda.
“I am confident that the signing and eventual implementation of the agreements will promote and encourage greater flow of investments and trade for the benefits of both countries for many years to come,” he said.
The signing of the treaty comes in the wake of the just concluded G7 summit in Canada where President Uhuru Kenyatta reached out to the powerful economies represented at the global convention in efforts to rally support the country’s development plans.
Trade between the two countries has remained lopsided with Kenya exporting goods worth Sh370 million in 2017 while importing goods worth Sh5.8 billion.
The South East-Asia economic powerhouse has already expressed interests in making investments in the country through the Singapore Business Federation in the areas of shipping, logistics, ports, water solutions, ICT, consumer electronics, construction equipment and conference services.
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