Kenya and Czech Republic sign deal to eliminate double taxation
Kenya has inked the Double Taxation Agreement (DTA) with the Czech Republic to hasten trade between the two nations.
In a statement on Tuesday, September 23, 2025, the Treasury said that the deal was signed by Treasury Cabinet Secretary John Mbadi and the Czech Republic’s Ambassador to Kenya, Nicol Adamcová.
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“CS Hon. John Mbadi and Her Excellency Ms Nicol Adamcová, Ambassador Extraordinary and Plenipotentiary, held a signing ceremony of the agreement for the elimination of double taxation between the Republic of Kenya and the Czech Republic at the Treasury building,” the X post read in part.
“The ceremony was witnessed by a delegation from the Czech Republic, officials from the National Treasury, the Ministry of Foreign and Diaspora Affairs, the Kenya Revenue Authority, and the Office of the Attorney General.”
What is double taxation?
This means that the income or profit of a company is taxed twice. For instance, before the agreement, if a Kenyan company had a branch in the Czech Republic, the owners of the business paid tax both in Kenya and the Czech Republic.
But, after the agreement, only one country has the right to tax a company. For instance, if a Kenyan company operates in the Czech Republic without a permanent office, Kenya alone has the right to tax the profits of the company, but if the company has a permanent office, the Czech Republic will tax the profits.
At the moment, Kenya has signed DTAA agreements with 15 countries.
“Double taxation is often an unintended consequence of tax legislation. It is generally seen as a negative element of a tax system, and tax authorities attempt to avoid it whenever possible,” National Treasury states.
Mbadi noted that the agreement will be key in tackling tax evasion and avoidance, which is often a result of poor tax planning.
The CS asserted that the deal will be important to reinforcing the healthy diplomatic ties the two countries have shared over the years, in addition to empowering businesses in the two countries.
“Mbadi noted that the agreement reflects the enduring strength of Kenya–Czech relations and constitutes an important milestone for the business community by offering clarity and predictability in the taxation of cross-border income,” Treasury stated.
