Agreement between the Government of the Republic of India and the Government of the Republic of Kenya for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income

Sec. 1.

Persons Covered.

This Agreement shall apply to persons who are residents of one or both of the Contracting States. Article 2

Sec. 2.

Taxes Covered.

Sec. 3.

The existing taxes to which the Agreement shall apply are, in particular:

(a) in the case of India: the income-tax, including any surcharge thereon (hereinafter referred to as "Indian tax");(b) in the case of Kenya: taxes on income chargeable under the Income Tax Act (Cap. 470) (hereinafter referred to as "Kenyan tax").

Sec. 4.

The Agreement shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes which have been made in their respective taxation laws.

Article 3

Sec. 5.

Permanent Establishment.

Sec. 6.

Notwithstanding the preceding provisions of this Article, an insurance enterprise of a Contracting State shall, except in regard to re-insurance, be deemed to have a permanent establishment in the other Contracting State if it collects premiums in the territory of that other State or insures risks situated therein through a person other than an agent of independent status to whom paragraph 7 applies.

Sec. 7.

An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. However, when the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise and conditions are made or imposed between that enterprise and the agent in their commercial and financial relations which differ from those which would have been made between independent enterprises he will not be considered an agent of an independent status within the meaning of this paragraph.

Sec. 8.

The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company, a permanent establishment of the other.

Article 6

Sec. 9.

Associated Enterprises.

Sec. 10.

Dividends.

Sec. 11.

Interest.

Sec. 12.

Royalties.

Sec. 13.

Fees for Management, Professional and Technical Services.

Sec. 14.

Capital Gains.

Sec. 15.

Independent Personal Services.

Sec. 16.

Dependent Personal Services.

Sec. 17.

Directors' Fees.

Directors' fees and other similar payments derived by a resident of a Contracting State in his capacity as a member or on behalf of a member of the board of directors in a company which is a resident of the other Contracting State may be taxed in that other State. Article 18

Sec. 18.

Artistes and Sports persons.

Sec. 19.

Pensions.

Sec. 20.

Government Service.

Sec. 21.

Professors, Teachers and Research Scholars.

Sec. 22.

Students.

Sec. 23.

Other Income.

Sec. 24.

Methods for Elimination of Double Taxation.

Sec. 25.

Non-Discrimination.

Sec. 26.

Mutual Agreement Procedure.

Sec. 27.

Exchange of Information.

Sec. 28.

Assistance in the Collection of Taxes.

Sec. 29.

Limitation of Benefits.

Sec. 30.

Members of Diplomatic Missions and Consular Posts.

Nothing in this Agreement shall affect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements. Article 31

Sec. 31.

Entry into Force.

Sec. 32.

Termination.

This Agreement shall remain in force indefinitely until terminated by a Contracting State. Either Contracting State may terminate the Agreement, through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year beginning after the expiration of five years from the date of entry into force of the Agreement. In such event, the Agreement shall cease to have effect:(a) In India, in respect of income derived in any fiscal year on or after the first day of April next following the calendar year in which the notice is given;(b) in Kenya: (i) in respect of taxes withheld at the source on amounts paid or credited to non-residents on or after the 1st day of January in the calendar year next following that in which the notice is given; (ii) in respect of other taxes on income arising for the year of income next following that in which the notice of termination is given, and subsequent years. For the Government of the Republic of India Forthe government of Republic of Kenya sd/- sd/- (Suchitra Durai) (HenryRotich) H.EHigh Commissioner of CabinetSecretary, TheRepublic of India NationalTreasury ForThe Republic of India ForThe Republic of Kenya