Kenya and Singapore on Monday signed agreement for the Elimination of Double Taxation on Income and the Prevention of Tax Evasion and Avoidance (DTA).
The deal was signed by Foreign Affairs Cabinet Secretary Musalia Mudavadi and his Singapore counterpart Dr Vivian Balakrishnan on the sidelines of the United Nations General Assembly in New York.
“This progressive accord, which supersedes the 2018 agreement, marks a significant step forward in enhancing bilateral economic relations. It provides clarity on the taxation of cross-border income and establishes a robust framework to prevent the double taxation of businesses and individuals engaged in transnational activities,” Mudavadi said.
He added that the deal is poised to reduce barriers to cross-border investments, fostering greater trade and economic cooperation between the two states.
“Following ratification by both countries, we expect this DTA to bolster mutual growth and deepen the economic partnership between Kenya and Singapore,” he said.
In May 2023, Singapore and Kenya agreed to bring into force a bilateral investment treaty and an avoidance of double taxation agreement that had been signed earlier, paving the way for greater trade and investment activity between the two countries.
The agreement was reached during Prime Minister Lee Hsien Loong visit to Nairobi.
PM Lee welcomed the avoidance of double taxation agreement, and hoped it will occur as soon as possible.
“This will send a strong signal to businesses and provide clarity and assurance on cross-border transactions and investment,” he said.
