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Good evening. Do we have a double taxation treaty with Tanzania? If not, how does EAC come into play? What are the agreed WHT rates?

Double Taxation Agreements (DTA) are agreements usually between two states to avoid double taxation, curb tax avoidance & evasion. DTAs also rationalise tax rates applicable to residents of both countries (contracting states). Yes we do have a combined DTA with TZ, UG, Rwanda, Burundi. Signed in 2010. However, for it to take effect it must be ratified by all EAC countries. Only Kenya & Rwanda have ratified. For EAC there is a reduced WHT (on payments to non-residents) on dividends to 5% instead of 10% & 15% instead of 20% for Management, technical, consultancy & training fees. Tax deducted by your clients outside Kenya will follow the rates in the DTA and a tax credit may be allowable to the extent of that applicable if Kenyan tax rules were used. If no DTA exists then WHT suffered should be treated as an expense.