Kenya’s Tax Appeal Tribunal provides guidance on taxation of professional and managements fees under Double Tax Treaty Agreement

Executive summary

The Kenyan Tax Appeals Tribunal (TAT) on 1 April 2021 ruled on tax dispute between McKinsey and Company Inc. Africa Limited (McKinsey/the Appellant) and the Kenya Revenue Authority (KRA/the Respondent) with respect to the withholding tax (WHT) on professional fees paid to a South African entity (SA entity) under the Kenya-South Africa Double Tax Treaty Agreement (DTTA).

McKinsey’s contention was that the taxing rights for professional fees should be guided by the Article on busi…