PKF in Eastern Africa

Publications

Kenya Tax Alert Issue No. 2 of 2019 - Dividend Distribution Tax


2019-02-18

With effect from 1 January 2019, The Finance Act, 2018 repealed Section 7A of the Income Tax Act, CAP 470 (ITA) on compensating tax and replaced it with a tax on dividends distributed out of untaxed gains or profits.

The Kenya Revenue Authority (“KRA”) has issued certain clarifications on the operation of the new changes which we highlight in the publication.