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ACT 4110A DOUBLE TAXATION

The document discusses double taxation, specifically in the case of Jeremiah, a Kenyan tax resident earning income from both Kenya and Uganda. It details his total gross income, tax liabilities, and the impact of double taxation, resulting in a tax due of Ksh 1,708,380 after reliefs. Additionally, it mentions Kenya's double taxation agreements with several countries to facilitate tax relief.

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Nixon Mark
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11 views2 pages

ACT 4110A DOUBLE TAXATION

The document discusses double taxation, specifically in the case of Jeremiah, a Kenyan tax resident earning income from both Kenya and Uganda. It details his total gross income, tax liabilities, and the impact of double taxation, resulting in a tax due of Ksh 1,708,380 after reliefs. Additionally, it mentions Kenya's double taxation agreements with several countries to facilitate tax relief.

Uploaded by

Nixon Mark
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ACT 4110A

SPRING 2025
DOUBLE TAXATION
Occurs when a tax payer is taxed twice from the same source of income.
Jeremiah, a Kenyan tax resident, was a full time employee of the University of
Nairobi at a gross package of ksh 6 million per annum. He also taught at
Makerere University at a salary of ksh 3 million per annum. In Uganda, the
remuneration was taxed ksh 300,000.
since Jeremiah is a Kenyan resident tax payer, he should be taxed from his
worldwide incomes (including the remuneration in Uganda which was already
taxed.
gross income ksh 9 million
tax liability:
first ksh 288,000 @ 10%= ksh 28,000
next ksh 100,000 @ 25%= ksh25,000
next ksh 5,612,000 % 30%= ksh 1,683,600
next ksh 3,000,000@ 32.5%= ksh 975,000
total tax ksh 2,711,600

Kenyan income ksh 6,000,000


first ksh 288,000 @10%=ksh 28,800
next ksh 100,000 @25%=ksh 25,000
next ksh 5,612,000 @ 30%=ksh 1,683,600
total tax ksh 1,737,400

double taxation ksh974, 200


Jeremiah tax liability

gross tax liability ksh 2,711,600


less personal relief ksh 28,800
less double taxation ksh 974,420

Tax due ksh 1,708,380.


Kenya has entered into double taxation agreements where multilateral tax
agreements are lodged with respective countries to allow for double taxation
relief.

Zambia, Malawi, Italy Germany, France, Spain and UK. Denmark, Norway,
sweden

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