Current Affairs - National - Discussion

Indian government notified the revised Double Taxation Avoidance Agreement (DTAA) between India and Kenya. It has been stated that, the revised DTAA will enhance transparency in tax matters, control tax evasion, and eliminate double taxation. It will also improve the flow of investment, technology and services between India and Kenya. The revised DTAA offers reduction in withholding tax rate on dividend and interest to 10 % from 15 %. The withholding tax rate on royalties, and fees for management, professional, technical services has been decreased to 10 % from 20 % and 17.5 % respectively. The revised DTAA issues a new Article on Limitation of Benefits to provide treaty benefits to bona-fide residents of India and Kenya. It will also prevent treaty abuse by third country residents. It will enable domestic law to prevent tax evasion. The revised DTAA has been upgraded to the latest international standard to make available exchange of information to the maximum extent.