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HMRC internal manual

Double Taxation Relief Manual

HM Revenue & Customs
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DT: Kenya: double taxation agreement, Article 20: Pensions

  1. Any pension (other than a pension of the kind referred to in paragraph (2) of this Article) and any annuity, derived from sources within a Contracting State by an individual who is a resident of the other Contracting State may be taxed in the first-mentioned Contracting State, but if the individual is subject to tax in the other Contracting State in respect of the pension the tax so charged in the first- mentioned Contracting State shall not exceed the lower of
(a) 5 per cent of the pension, or  
(b) the amount of the tax chargeable on the pension or annuity in the other Contracting State 
  1. Pensions paid by, or out of funds created by, a Contracting State to an individual for services rendered to that Contracting State in the discharge of governmental functions may be taxed in that Contracting State.
  2. The term `annuity` means a stated sum payable periodically at stated times during life or during a specified or ascertainable period of time, under an obligation to make the payments in return for adequate and full consideration in money or money’s worth.