The income tax treaty between Kenya and South Korea was signed on 8 July 2014. The treaty is the first of its kind between the two countries and will enter into force once the ratification instruments are exchanged.
The treaty covers Kenyan income tax chargeable in accordance with the provisions of the Income Tax Act, and Korean income tax, corporation tax, special tax for rural development and local income tax.
The following capital gains derived by a resident of one Contracting State may be taxed by the other State:
Gains from the alienation of other property by a resident of a Contracting State may only be taxed by that State.
Both countries apply the credit method for the elimination of double taxation.
Article 28 of the treaty includes limitation on benefits provisions. In respect of Articles 10 (Dividends), 11 (Interest), 12 (Royalties), 13 (Capital Gains) and 22 (Other Income), a resident of a Contracting State will not be entitled to the benefits otherwise provided if:
The treaty will enter into force once the ratification instruments are exchanged, and will apply from 1 January of the year following its entry into force.
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