Special
arrangements
for relief
from double
taxation
(1)The Minister may from time to time by notice declare that arrangements,
specified in the notice and being arrangements that have been made with
the government of any country with a view to affording relief from double
taxation in relation to income tax and other taxes of a similar character
imposed by the laws of the country, shall, notwithstanding anything
subject to subsection (5) but notwithstanding any other provision to the
contrary in this Act or in any other written law, have effect in relation to
income tax, and that notice shall, subject to the provisions of this section,
have effect according to its tenor. (*REF*)
(2)The arrangements in the notice may include provisions for relief from tax
for periods before the commencement of this Act or before the making of
the arrangements.
(3)A notice under this section may be amended or revoked by a subsequent
notice and an amending or revoking notice may contain such transitional
provisions or termination date as appear to the Minister to be necessary
or expedient.
(4)The Minister shall cause a copy of a notice made under subsection (1) and
of any subsequent notice made under subsection (3) to be laid, without
delay, before the National Assembly.
(5) Subject to subsection (6), where an arrangement made under this section
provides that income derived from Kenya is exempt or excluded from tax,
or the application of the arrangement results in a reduction in the rate of
Kenyan tax, the benefit of that exemption, exclusion, or reduction shall
not be available to a person who, for the purposes of the arrangement, is
a resident of the other contracting state if fifty per cent or more of the
underlying ownership of that person is held by an individual or individuals
who are not residents of that other contracting state for the purposes of
the agreement.Finance Act, 2014 effective 01January 2015
Every special arrangement for relief from double taxation made with the Government of any country outside of the Republic of Kenya with a view of affording relief from double taxation in relation to income tax and any taxes of similar character imposed by the laws of that country shall, subject to subsection (2) but notwithstanding any other provision to the contrary in this Act or in any other written law, have effect in relation to income tax, and every such agreement shall be subject to the provisions of the Treaty Making and Ratification Act, 2012.
(2)
Subject to subsection (3), where an arrangement made under this section provides that income derived from Kenya is exempt or excluded from tax, or the application of the arrangement results in a reduction in the rate of Kenyan tax, the benefit of that exemption, exclusion, or reduction shall not be available to a person who, for the purposes of the arrangement, is a resident of the other contracting state if fifty per cent or more of the underlying ownership of that person is held by a person or persons who are not residents of that other contracting state for the purposes of the agreement.
(3)
Subsection (2) shall not apply if the resident of the other contracting state is a company listed in a stock exchange in that other contracting state.
(4)
In this section, the terms "person" and "underlying ownership" have the respective meanings assigned to them in the Ninth Schedule.
41A - Agreements for
exchange of
information
The Minister may, by notice in the Gazette, from time to time declare that
arrangements specified in the notice, being arrangements* made with the
government of any country with the view of exchanging information
relating to income tax or other taxes of a similar character imposed by the
laws of that country, shall, notwithstanding anything to the contrary in
this Act or any other written law, have effect in relation to income tax,
and that notice shall, subject to the provisions of this section, have effect
accordingly. Finance Act 2012 01 January 2012 (Finance Act 2021- wef-01July2021)*
Comments