BILATERAL AGREEMENT AVOIDANCE DOUBLE TAXATION NIGERIA AND KENYA

What Is This Policy?

A bilateral tax treaty between Nigeria and Kenya to prevent double taxation of income earned across both countries, promote cross-border trade and investment.

Who Does It Target?

Nigerian and Kenyan businesses, investors, multinational companies, and individuals earning income in both countries.

What Does It Aim to Achieve?

Eliminate double taxation, encourage bilateral trade and investment, provide tax certainty, and prevent tax evasion.

Key Features

Double Tax Relief: Prevents income from being taxed in both countries Investment Promotion: Encourages cross-border investment between Nigeria and Kenya Tax Certainty: Provides clear rules on which country has taxing rights

Current Status

Rollout Stage: Signed/Under implementation Coverage: Nigeria and Kenya Administering Bodies: Federal Inland Revenue Service (FIRS) and Kenya Revenue Authority

How to Access

Taxpayers earning income in both countries can claim relief under the treaty through their tax filings with FIRS or KRA.

Important Terms

Relief available for withholding taxes on dividends, interest, and royalties Permanent establishment rules determine taxing rights

Impact & Metrics

Promotes bilateral trade between Africa's two largest economies and provides tax certainty for investors.

Official Resources

Website: firs.gov.ng Contact: Federal Inland Revenue Service, Abuja

Legal Framework

Concluded under Nigeria's powers to enter bilateral tax treaties under the executive authority of Section 5 of the 1999 Constitution (as amended) and domesticated through the Finance Acts. The OECD Model Tax Convention and UN Model Double Taxation Convention provide the template. Operates alongside the Companies Income Tax Act (CITA), the Personal Income Tax Act (PITA), and the Federal Inland Revenue Service (Establishment) Act.