By Dorothy Musyoka
On the sidelines of the United Nations General Assembly (UNGA), a significant advancement in Kenya-Singapore relations was made as the Prime Cabinet Secretary and Cabinet Secretary for Foreign & Diaspora Affairs agreement Musalia Mudavadi, signed an agreement with Singapore’s Foreign Minister, Dr. Vivian Balakrishnan, aimed at the Elimination of Double Taxation on Income and the Prevention of Tax Evasion and Avoidance (DTA).
According to the Prime Cabinet Secretart, the signed agreement replaces the previous agreement established in 2018, marking a pivotal step in enhancing bilateral economic relations.
Additionally, the new DTA provides essential clarity regarding the taxation of cross-border income, ensuring that businesses and individuals engaged in transnational activities can operate under a fair and predictable tax regime.
“This progressive accord, which supersedes the 2018 agreement, marks a significant step forward in enhancing bilateral economic relations. It provides clarity on the taxation of cross-border income and establishes a robust framework to prevent the double taxation of businesses and individuals engaged in transnational activities,” Mudavadi said.
By establishing a robust framework to prevent double taxation, the agreement is set to eliminate barriers to cross-border investments, fostering greater trade and economic cooperation between Kenya and Singapore.
This initiative reflects the commitment of both nations to cultivate a conducive environment for investment and economic growth.
“The agreement is poised to reduce barriers to cross-border investments, fostering greater trade and economic cooperation between our nations,” Mudavadi noted.
Once ratified by both countries, this DTA is anticipated to significantly bolster mutual growth, providing a solid foundation for deepening the economic partnership between Kenya and Singapore.
As both nations work collaboratively to harness new opportunities, this agreement is poised to pave the way for enhanced trade, investment, and shared prosperity.