The reductions available under double taxation treaties are only available where 50% or more of the underlying ownership of the overseas recipient is held by individuals resident in that state or the recipient is listed on a stock exchange in that state. Capital Gains Tax Capital gains tax was re-introduced with effect from 1st January 2015. It applies to most capital gains earned by companies and gains accruing to individuals from the transfer or land, shares (other than shares listed on the Nairobi Stock Exchange) and certain securities. The applicable rate is a final tax of 5% of the gain. There is no indexation. Personal Identification Number Both companies and individuals whose income is chargeable to tax under the Income Tax Act are required to obtain a Personal Identification Number ( PIN ) from the Income Tax Department of the Kenya Revenue Authority. Dispute Resolution Court Litigation Kenya has a four-tiered court system, namely the Magistrates Courts, the High Court, the Court of Appeal and the Supreme Court. The jurisdiction of the Magistrate’s Courts is subject to geographical
and monetary limits as prescribed from time to time by the Chief Justice. The jurisdiction of the High Court includes unlimited original jurisdiction in civil matters. The Court of Appeal only has appellate jurisdiction to hear appeals from the High Court and from any other courts or tribunals as prescribed by statute. The Supreme Court has appellate jurisdiction to hear and determine appeals from the Court of Appeal and from any other court or tribunal as prescribed by legislation. Arbitration The arbitration system is relatively well-developed in Kenya and is used widely in use. A mediation centre has also been developed as an alternative method to resolve disputes. The Arbitration Act 1995 provides the recognition and enforcement by the High Court of Kenya of international arbitral awards in accordance with the provisions of the NewYork Convention, which Kenya acceded to in February 1989 with a reciprocity reservation. Accordingly, a foreign arbitral award may be enforced upon application in writing to the High Court of Kenya, attaching the duly authenticated original or a certified copy of the award and the original or certified copy of the arbitration agreement.
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