Nimegoogle nikaona foreigners in Japan pay income tax to Japan and local municipalities….Japanese companies pay tax on their ‘world wide’ income —-hence there’s risk of double taxation here …..however foreign companies operating in Japan must pay tax for their ‘Japan source income’ hence some risk of double taxation for foreign companies as they also need to pay tax to their home countries. However, hio swali ya @wrongturn hapo juu about whether Kenyans/Kenyan companies receive similar exemptions is valid.Im not knowledgeable in taxation matters but I will explain something I know.
Kenyans who live and work in foreign countries pay income taxes in those countries. If you go to work in Uganda, your income tax is deducted in Uganda. Kenya won't ask you to pay income tax again. This is not the case with all countries. The USA and Eritria expect their citizens to pay taxes back home. When the same income is taxed twice, we call that double taxation.
I do not know whether the same scenario applies to companies. Lakini remember in legalese, companies are 'persons'.
Dicksclaimer:. Hii porojo yoote nimesama inaweza kuwa ukweli
nonetheless, all these don’t clarify the question of why we’re actually giving the exemptions to tax as opposed to signing a double taxation treaty which usually means people/corporations from both companies benefit from the agreement.