Following a trade agreement signed last year between Kenya and Singapore to eliminate double taxation, the Cabinet has formally approved the deal, strengthening economic ties between the two nations.
The ratification also enables Kenya to prevent fiscal evasion in cross-border transactions with Singapore. ''Cabinet approved the ratification of an agreement with Singapore to eliminate double taxation and prevent fiscal evasion, further strengthening Kenya's global trade and investment ties,'' read part of the dispatch. The deal will replace a similar agreement established in 2018 when the two nations first formalized their trade relations.
Prime Cabinet Secretary Musalia Mudavadi and Singapore's Foreign Affairs Minister Vivian Balakrishnan signing the DTA, on September 23, 2024.
Photo Musalia Mudavadi With the ratification, businesses with permanent establishments in either country will benefit from deductions on trade-related expenses, including administrative, executive, and general business costs, preventing double taxation on cross-border profits. However, exceptions will apply to certain industries, notably banking, to prevent the exploitation of royalties and interest payments.
