On 26 June 2020, following the repeal of the DBA, the Kenyan government created a subsequent DBA between Kenya and Mauritius. The DBA is very similar to the original DBA and provides for reduced withholding rates on dividends, interest and royalties. The DBA also addresses other relevant issues, including the exchange of information between the two countries and the procedures of the reciprocal agreement. In addition, the DBA provides for a service MOU when services are provided for a sum of 6 months over a 12-month period. A fixed location does not constitute an MOU if the nature of the activities carried out by the fixed place is a function of assistance or preparation. Capital gains made by one State party within a State party to the transfer of real estate2 to another contracting state are taxable in the other State party. Capital gains from the sale of shares are taxable only in the country of residence, even if the value of the shares is due to real estate located in the country of origin. A mechanism that speeds up the resolution of tax disputes In the absence of a fixed head office, an economic tax may be created when a resident of one State Party has, in the other State party, a dependant representative with the general authority to enter into contracts on behalf of the resident. This excludes situations in which activities are limited to the purchase of goods or goods for the foreign company in whose name it acts. Interest payments are deductible when PE engages in banking activities.

Conversely, an MOU operating in banking operations is taxable PE income on the interest received by a bank-owned MOU. There is no withholding tax if the royalty is paid by a company from the foreign income of the Mauritian company. The profit of a foreign company in one contracting state is taxable in the other contracting state only if the foreign enterprise operates through an MOU located in the other contracting state. The execution of the DBA awaits the exchange of instruments and any State party that informs each other of the completion of the necessary activities. Under Mauritian national law, no withholding tax applies to interest paid to a non-resident who does not operate in Mauritius (a) from a Financial Services Act (FSA) company on his foreign source income; (b) by a bank holding a banking licence under the Banking Act, to the extent that interest is paid on the gross income of its banking operations with non-residents and companies holding a GBL under the FSA. Interest collected is also tax-exempt in a number of other cases, such as. B the interest rate for a non-resident person of a Mauritanian bank and interest on bonds and sukuks listed on the stock market of a non-resident company. B. Compensation is paid by or on behalf of an employer who has no domicile in the other state.

KRA Headquaters, Times Tower, Haile Selassie Avenue, Nairobi Kenya For more information or explanations, please contact: Income from a resident of a contracting state from real estate may be taxed in the contracting state in which this building is located. The two states agreed to exchange information relevant to the application of the DBA and to the administration of national taxes collected in the contracting states. Earnings or employment benefits of a state established in a contracting state are taxable only in that state, unless employment is exercised in the other contracting state, in which case the remuneration of that other state is taxable in that other state. However, the remuneration of a contracting state for employment in the other contracting state is taxable only if: the improvement of the relationship between KRA and our compliant customs operators expenditure, including the executive and general administrative costs borne by the EP within or outside the State in which it is located, is eligible for the calculation of the EP`s taxable profit.