Mauritius and Kenya recently signed a double taxation agreement to strengthen their economic relationship and promote cross-border investment. This agreement aims to prevent the double taxation of individuals and businesses who earn income in both countries by ensuring that taxes paid in one country are recognized in the other.

Kenya and Mauritius have long enjoyed a strong economic relationship, with Mauritius being one of the top investors in Kenya. This new agreement is expected to further boost economic ties between the two countries, as it provides greater clarity on tax matters and promotes transparency in tax administration.

Under the agreement, Kenyan residents earning income in Mauritius will be taxed in accordance with Mauritius` tax laws, but will receive a credit for the taxes paid in Kenya. Similarly, Mauritian residents earning income in Kenya will be taxed in accordance with Kenya`s tax laws, but will receive a credit for the taxes paid in Mauritius. This means that businesses and individuals operating in both countries will not be subjected to double taxation.

In addition to preventing double taxation, the agreement also includes provisions to combat tax evasion and promote the exchange of information between the two countries. This is in line with international standards on tax transparency and the exchange of information, as recommended by the Organisation for Economic Co-operation and Development (OECD).

The Mauritius Kenya double taxation agreement is expected to have a positive impact on both economies by reducing tax costs for businesses, promoting cross-border investment, and encouraging greater transparency in tax administration. As such, it is an important step towards strengthening the economic relationship between Mauritius and Kenya, and promoting greater regional integration and cooperation.