India -Kenya DTTA

Hi Anil,

Regarding India-Kenya DTAA and the withholding tax on brokerage & commission at 10% by Kenya:

1. DTAA Benefit:
   Generally, the DTAA between India and Kenya provides relief from double taxation by specifying reduced withholding tax rates on various types of income, including fees like brokerage and commission.

2. Check DTAA Provisions:

   • Look up the specific article on "Independent Personal Services" or "Fees for Technical Services" or "Other Income" in the India-Kenya DTAA.

   • Usually, brokerage and commission income may attract a reduced withholding tax rate, often lower than the domestic Kenyan rate.

3. Claiming DTAA Benefits:

   • To claim the DTAA rate, the Indian recipient should provide a Tax Residency Certificate (TRC) issued by Indian tax authorities.

   • The Kenyan tax authorities will require this TRC and possibly a Form for DTAA benefits to apply the reduced withholding tax rate as per the treaty.

4. If no TRC or claim:

   • Kenya may deduct tax at the domestic rate (10% in your case).

   • Later, the Indian taxpayer can claim credit for the foreign tax paid while filing Indian tax returns.

5. Recommendation:

   • Confirm the exact rate for brokerage & commission under the DTAA.

   • Ensure the Indian party obtains and submits the TRC to Kenyan tax authorities to avail the DTAA benefit.

   • If tax has already been deducted at 10%, you can claim Foreign Tax Credit in India for the amount deducted.