NAIROBI, Kenya, Feb 8 – The Tax Appeals Tribunal has ruled that companies with employees working abroad will not face double taxation.
The Tribunal barred the Kenya Revenue Authority from demanding Sh436 million in PAYE from a Kenyan company, asserting that the taxes paid to a related overseas entity fully met the company’s obligations.
Professional services advisory firm PwC advises companies sending employees abroad to establish clear contractual terms with their related entities and ensure strict compliance with foreign tax laws.
This proactive approach, PwC suggests, is crucial to avoiding similar taxation disputes in the future.
Additionally, PwC recommends that Kenyan employees working overseas deduct taxes paid abroad when filing their worldwide income in Kenya.
This measure is designed to safeguard their earnings and prevent any undue financial burden resulting from double taxation.
