INTERNATIONAL TAX

International Tax Services

Welcome to Clay & Associates Advocates, your trusted partner in international tax and cross-border legal services!

We work with companies of all sizes in sectors such as finance, technology, retail, real estate, hospitality, fashion, and luxury brands. Our lawyers combine sector knowledge and global experience to advise on the right tax arrangements for your business.

Contact us today for expert international tax and cross-border support.

Tax Lawyers

OUR SERVICES

Moving to a new country should not entail a tax headache. Our team of international tax lawyers can help you meet the requirements of each country without incurring excessive charges.

If you are thinking of moving between countries for more than a short-term holiday, whether to take a secondment for a few years to advance your career, seek better education for your children, escape political or social upheaval, or simply to reside in a more congenial atmosphere, you may find there is enormous benefit to taking tax advice.

Our experienced tax lawyers provide expert advice and guidance in areas such as:

  • Multi-jurisdictional transactions
  • Foreign inbound companies looking to establish their regional/continental presence in Kenya
  • Pre and post-immigration tax advice
  • Compliance, reporting and disclosure
  • Employee incentives and share schemes
  • Real estate tax on development projects

We have a detailed understanding of the tax compliance needs of our clients, which span companies, corporate bodies, partnerships, individuals, and trustees. We advise these clients on complex cross-border compliance issues and work with professionals in other jurisdictions to provide a complete and efficient service.

So whatever your problem or situation, our highly-trained and experienced team has seen it all before. To get started, please contact us to discuss your requirements and arrange a legal assessment.

Choose Us

ON YOUR SIDE

Before any fees, we’ll first schedule a consultation to listen and learn more about your situation.

The session is an hour long, and there are no obligations to engage our services afterward.

As part of the consultation, we’ll lean on our years of experience as tax lawyers to suggest the best solution for you or your business.

We work with clients across a range of sectors including retail, real estate, hedge and private equity funds (on both the buy and sell sides), fashion, technology, hospitality, and luxury brands. It’s a point of pride for our lawyers to ‘speak your language’ – by which we mean that we understand your industry and the broader climate in which you operate. We apply this real-world knowledge to find the most effective tax arrangements for your business.

Contact us today to schedule a consultation and let us be your trusted advisor in all your international tax and cross-border legal matters.

Contact

OUR OFFICE
Nextgen Mall, 3rd Floor, Suite 34, Nairobi.
WORKING HOURS
Mon-Fri: 8 am – 5 pm

Frequently Asked Questions

How can a company plan for becoming deemed Kenyan domiciled for tax purposes?

There are two main ways a company can be considered Kenyan-domiciled for tax purposes:

  1. Registration under Kenyan Law: This is the most straightforward approach. If your company is registered under the Kenyan Companies Act through the Business Registration Service, it automatically qualifies as a Kenyan tax resident.

  2. Management and Control: Even if registered elsewhere, your company can be deemed Kenyan resident if the management and control of its affairs happen within Kenya during a particular income year. This means key decisions and strategic direction are made in Kenya.

Here’s how a company can plan to achieve management and control in Kenya:

  • Holding Board Meetings in Kenya: Conduct regular board meetings in Kenya, with proper minutes documenting the decisions made. A company should employ a lawyer or a company secretary for this work.
  • Senior Management Presence: Ensure key decision-makers and senior management are physically located in Kenya.
  • Substance in Kenya: Have a substantial business presence in Kenya, with employees, office space, and resources to support decision-making.

It’s important to note that tax residency can be a complex issue, and the final decision rests with the Kenya Revenue Authority (KRA).

What are some of the steps a company can take before moving their business to Kenya?

Moving a business to Kenya requires careful planning and execution. Here are some key steps your company should take before making the move:

Market Research and Feasibility Analysis:

  • Market Research: Conduct thorough market research to understand the Kenyan market for your industry. Analyze the competitor landscape, your customer needs, and potential challenges.
  • Feasibility Analysis: Evaluate the financial viability of your business in Kenya. Consider factors like operating costs, potential revenue streams, tax implications, and compliance costs.

Business Registration and Legal Setup:

  • Choose a Business Structure: Decide on the most suitable business structure for your Kenyan operations whether that’s a company or a partnership or a sole proprietorship. Options include registering a branch of your existing company, establishing a subsidiary, forming a new Kenyan company, or forming a partnership.
  • Entity Registration: Follow the process for registering your chosen business structure in Kenya. This typically involves completing online applications through the eCitizen portal, obtaining required licenses and permits, and registering with tax authorities. Contact our law firm today for assistance or learn more about this service here.

Tax Planning and Compliance:

  • Understand Kenyan Tax Laws: Familiarize yourself with Kenyan tax laws and regulations. This includes corporate income tax, value-added tax (VAT), and any relevant industry-specific taxes.
  • Seek Tax Advice: Consult with a Kenyan tax advisor to develop a tax plan that minimizes your tax burden and ensures compliance with Kenyan tax authorities.

Human Resources and Employment:

  • Labor Laws: Research Kenyan labor laws regarding employee contracts, minimum wages, benefits, and work permits for foreign staff.
  • Recruitment: Develop a strategy for recruiting qualified Kenyan staff. Consider partnering with local recruitment agencies or utilizing online job boards.
  • Work Permits: If required, obtain work permits for any foreign employees who will be working in Kenya.

Logistics and Operations:

  • Supply Chain: Evaluate your supply chain and identify potential challenges and opportunities in Kenya. Consider local sourcing options and import regulations.
  • Office Space: Secure appropriate office space for your Kenyan operations. The location should be strategically chosen based on your business needs and accessibility.
  • Banking and Finance: Establish relationships with Kenyan banks to manage your finances in the country.

Additional Considerations:

  • Cultural Awareness: Invest in cultural awareness training for your staff, both local and foreign. Understanding Kenyan business culture will foster smoother operations.
  • Government Approvals: Certain industries might require specific licenses or permits from relevant government agencies. Research any necessary approvals for your business type.
  • Post-Move Support: Develop a plan for ongoing support after the move. This might include IT infrastructure setup, ongoing legal and accounting services, and assistance with navigating Kenyan business regulations.

By following these steps and seeking professional advice where needed, your company can set itself up for a successful move and operation in Kenya.

Does Kenya apply double taxation treaties?

Kenya does apply double taxation treaties (DTAs) to avoid taxing the same income twice. Here’s how it works:

  • DTA Agreements: Kenya negotiates and signs DTAs with other countries. These agreements specify how taxing rights are allocated between Kenya and the other country for various income types (e.g., dividends, royalties, business profits).
  • Tax Relief: If you are a resident of a country with a DTA with Kenya, you might be entitled to tax relief in Kenya under the terms of that agreement. This could involve reduced tax rates on certain income sources or even exemption from Kenyan tax altogether.

Finding Applicable DTA:

  • To determine if a DTA applies to your situation, you’ll need to know:
    • Your residency for tax purposes
    • The country where the income arises

With this information, you can consult the list of Kenya’s DTA partners to see if there’s a relevant agreement in place. The specific details of the DTA will then determine how taxation is handled.

It’s important to note:

  • DTAs are complex legal documents. Consulting with a tax advisor familiar with Kenyan tax law and the relevant DTA is recommended for a clear understanding of how it applies to your specific situation.

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