South Africa, Kenya Sign DTA

by Lorys Charalambous, Tax-News.com, Cyprus

30 November 2010

South Africa’s Deputy President, Kgalema Motlanthe, and Kenya’s Vice President, Kalonzo Musyoka, have overseen the signing of a bilateral double taxation agreement (DTA) between their two countries, on the occasion of the former’s visit to Kenya.

The DTA, and a memorandum of understanding (MoU) on agricultural cooperation signed at the same time, are aimed at removing some of the impediments to trade and investment, so as to improve commercial relations between Kenya and South Africa, before a planned visit to Kenya by the South African President, Jacob Zuma, next year.

While there were no details given of the signed DTA, it was said that the agreement was aimed at providing increased scope for investment between the two countries by removing the possibilities of taxation being imposed on investors in both jurisdictions.

In like manner, it was felt that the MoU would particularly help Kenyan exporters of such agricultural products as tea and livestock, in their attempts to trade with South Africa.

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