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Kenya
EXCHANGE NOTES BETWEEN
THE ISLAMIC REPUBLIC OF PAKISTAN AND
THE REPUBLIC OF KENYA
CONCERNING THE RECIPROCAL AVOIDANCE OF DOUBLE TAXATION
OF AIR ENTERPRISES FROM PAYMENT OF INCOME TAX.
[Notification No. S.R. 0. 713(1)/94 dated 13th July, 1994]
Whereas the diplomatic notes annexed herewith have been exchanged
between the Islamic Republic of Pakistan and the Republic of Kenya for the purpose of
reciprocal avoidance of double taxation on income derived from the operation of aircraft
in international traffic;
NOW, THEREFORE, in exercise of the powers conferred by sub-section (1) of section 163 of
the Income Tax Ordinance, 1979, (XXXI of 1979), read with clause (141) of Part I of the
Second Schedule to that said Ordinance, the Federal Government is pleased to direct that
all the provisions of the said Exchange Notes shall be given effect to in Pakistan.
ANNEXURE
The High Commission of Pakistan presents its compliments to the
Ministry of Foreign Affairs of the Government of the Republic of Kenya and, with reference
to the Kenyan Income Tax Act, which, subject to reciprocity, grants tax exemption to
foreign air enterprises operating in international air traffic, has the honour to inform
as follows:-
"Under clause (141) of the Second Schedule to the Income Tax Ordinance, 1979, income
of a foreign enterprise derived from the operation of aircraft in international traffic
may be exempted from payment of tax on a reciprocal basis"
The Government of the Islamic Republic of Pakistan, therefore, confirms the principle of
reciprocity by stating that, subject to the grant by the Kenyan Government of exemption
from tax on the income derived by air enterprises carried on by residents of Pakistan from
the operation of aircraft in international traffic, air enterprises resident in Kenya
deriving income from the operation of aircraft in international traffic shall be exempt
from income tax in Pakistan. The proposed tax exemption will be applicable in Pakistan to
the income of air enterprises derived on or after the first day of January, 1992.
The High Commission of Pakistan, therefore, requests the Ministry of Foreign Affairs of
the Government of Republic of Kenya to confirm that the principle of reciprocity in fiscal
matters will be applied to the air enterprises of Pakistan.
The High Commission of Pakistan avails itself of this opportunity to renew to the Ministry
of Foreign Affairs of the Government of the Republic of Kenya the assurances of its
highest consideration.
Ministry of Foreign Affairs and International Cooperation,
Republic of Kenya, Nairobi.
The Ministry of Foreign Affairs and International Cooperation of the Republic of Kenya
presents its compliments to the High Commission for Pakistan and with reference to the
letter’s notes No. MISC. 1/92 of 19th October, 1993 and No. MISC. 1/92 of 10th
January, 1994 concerning the reciprocal exemption of air enterprises from payment of
income tax, has the honour to convey the following:-
The Government of the Republic of Kenya agrees to exempt from tax gross income derived
from the International operation of aircraft by air enterprises of Pakistan.
In view thereof, the Ministry considers that the Note No. 1/92 of 19th October, 1993 of
the High Commission for Pakistan together with this Ministry's reply confirming that the
Government of Kenya agrees to these terms, constitute an Agreement between the two
Governments. This Agreement shall come into force on the date of reply note of this
Ministry's and shall have effect for Kenya Tax with respect to taxable years beginning on
or after the first day of January 1986.
The Ministry of Foreign Affairs and International Cooperation of the Republic of Kenya
avails itself of this opportunity to renew to the High Commission for Pakistan the
assurances of its high consideration.
HIGH COMMISSION FOR PAKISTAN, NAIROBI
M. IQBAL FARID,
Additional Secretary
[C. No. 2 (21) IT. 2/74.]
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