Kenya and Portugal on Tuesday signed an agreement for deal with double taxation.
The main purpose of the Agreement on the Avoidance Double Taxation is to curb double taxation of income or gains arising in one country and paid to residents of the other country.
This will ensure a conducive environment for investments and trade in goods and services between the countries by removing uncertainties on taxation occasioned by having two different jurisdictions at play.
It will also enhance facilitation in tax administration through the sharing of information by tax authorities of the two countries. This will go a long way in fighting tax evasion.
The deal was signed in Portugal during the European-African Forum, an action-oriented platform geared towards fostering stronger collaboration between Europe and Africa.
The theme of the meeting was 'Crafting Coalitions for Change'. African and European leaders from government, business, and civil society attended the forum.
Kenya has signed with countries including the US and Switzerland in the last few days. The US, Kenya signed deals worth Sh10 billion at the US-Kenya conference in Nairobi.