The withholding tax paid abroad can only be invoked against Kenyan income tax in the case of unilateral or bilateral relief. Kenya has only 11 bilateral tax treaties that allow direct tax compensation (and double taxation relief). Kenya has dual tax evasion contracts with the following countries: The contract provides that a stable establishment is considered constituted when a company provides services within a contracting state through employees or other staff hired for an identical or related project for a period or period covering more than 183 days over a 12-month period. Some of these contracts provide preferential withholding rates. However, in most cases, the standard tax rates mentioned above apply. In most cases, the contracts will allow the withholding of the withholding tax on the tax debt in the countries concerned to be attributed. Agreements have been concluded with East African partner countries Kuwait, Iran, Mauritius and the Vae, but have not been ratified. The contract includes Kenyan income tax and South Africa`s normal tax, secondary business tax, withholding tax on royalties and tax on foreign artists and sportsmen. If direct tax calculations are not possible, withholding tax (where income is taxable in Kenya) is deductible. The unilateral tax relief in Kenya is extended to Kenyan nationals for employment, sports and entertainment sites, which must be reported and taxed in Kenya. 7) Mauritius (possibly effective January 1, 2017).
All other eligible payments are attracted by withholding tax at the usual withholding tax rates.