UAE, Kenya ink pact to avoid double taxation
Abu Dhabi, July 5, 2011
The UAE Ministry of Finance recently signed an agreement with the Republic of Kenya to avoid double taxation on income.
The agreement is expected to further develop financial cooperation between parties, as well as supporting investment opportunities and financial development efforts between the UAE and the Republic of Kenya, in addition to implementing progress goals set by the UAE leadership.
Coinciding with the UAE’s efforts to enhance its participation in the global economy, the signed agreement supports leadership efforts in facilitating the free movement of factors of production, increasing available investment opportunities, promoting import and export activities, in addition to developing trade practices and exports, a statement said.
Younis Haji Al Khouri, Undersecretary of MOF, emphasised that the new agreement would shape the legal framework for tax relationships with the Republic of Kenya and would administer financial and economic interactions by Emirati and Kenyan investors in both countries.
“The UAE will be receiving a range of benefits as a result of the signed agreement,” he said. “Such agreements are important as they allow Emirati investors to obtain tax reductions and exemptions on income and capital in both the public and private sectors.”
“Furthermore, these agreements aim at protecting UAE investments from additional taxation in the future, while also maintaining Emirati investors’ rights in withdrawing their investment capital from any of the countries that have entered these agreements,” Al Khouri added.
The UAE has signed 57 similar agreements to date in support of its efforts to diversify income through the reduction of transaction tax applied on UAE investments, whilst also enhancing bilateral trade relations, the ability to attract foreign investment, and the free flow of capital.
Such agreements also aim at promoting the UAE’s regional and international economical and financial role, and at avoiding double taxation through the creation of a conducive investment climate in both the public and private sectors.
They also support efforts to enhance the air transport industry and increase trade and tourism practices. – TradeArabia News Service