News No.   : 5/2007

Date              : 26 December 2006

Subject        : Double Tax Treaty Between Thailand and Kenya.

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                         Double Tax Treaty Between Thailand and Kenya

                         The Thai delegation led by Mr.Satit Rungkasiri, Deputy Director-General, the Revenue Department and the Kenyan delegation from Ministry of Finance and Ministry of Foreign Affairs recently negotiated the Convention between Thailand and Kenya for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income in Nairobi during 18-22 December 2006, resulting in the successful agreement of all articles. The Revenue Department and the Ministry of Foreign Affairs will expedite procedures for the entry into force.

                          Mr.Satit said that so far, 52 Thai tax treaties have already been entered into force. A treaty will provide advantages to investors particularly in relieving tax or eliminating double taxation. The Kenyan side greatly facilitated taxation for Thai investors by agreeing to tax rates for income from dividend, interest and royalty that are lower than those in Kenya’s domestic tax law and Kenya’s other tax treaties.

                         Opportunities for Thai investment in Kenya include service business such as hotel, restaurant, spa as well as other industries such as textile, construction, jewelry, rubber, plastic or automotive parts.