The Memorandum of Understanding on Double Taxation between Nigeria and Kenya: An Appraisal

Authors MK Adebayo, SM Olokooba

ISSN: 2521-2613
Affiliations: Lecturer and Head, Department of Private and Property Law, Faculty of Law, University of Ilorin; Lecturer, Faculty of Law, University of Ilorin
Source: Africa Nazarene University Law Journal, 2015, Issue 1, p. 102 – 117


It is the practice in most States for income tax to be imposed both on worldwide income derived by residents of the country and on income derived by non-residents generated within the country. The effect of such a system is that income derived by a resident of one State from a source in another country is subjected to tax in both States. This position clearly discourages foreign investment, hence the conclusion of double taxation treaties between States. The focus of this article is, therefore, an appraisal of the memorandum of understanding (MoU) agreement on double-taxation recently entered into by Nigeria and Kenya. It argues that the MoU, if effectively implemented, will boost trade and economic development through increased revenue generation from taxation. The article elucidates on the jurisprudential basis of double taxation treaties by States and then proceeds to undertake a critical analysis of the MoU by Nigeria and Kenya.