tax ACADEMY
Konnectplus

KENYA

Double Taxation Agreements (DTAs) & Protocols





Chapter 1

What is 'Double Taxation'


»Double taxation is a taxation principle referring to income taxes paid twice on the same source of earned income.
»It can occur when income is taxed at both the corporate level and personal level.
» Double taxation also occurs in international trade when the same income is taxed in two different countries.


Double Taxation Agreements(DTAs) (s.)

DTAs are agreements negotiated between countries or jurisdictions to outline the rights of a territory with respect to taxation of specific types of incomes.
The main aim of a DTA is to eliminate double taxation of income and capital and curb tax avoidance and evasion.
They also serve to enhance capital import and export neutrality and hence encourage cross-border investments.
DTAs accomplish this by indicating which country has the right to tax a specific income between the source and the resident state; and/or the process of alleviating the double taxation
The purpose of these agreements between the two tax jurisdictions of two countries is to enable the elimination of double taxation.



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