Kenya Clarifies Taxation of Untaxed Profits Distributed as Dividends

The Kenya Revenue Authority (KRA) released on 8 February 2019 a notice clarifying the new measure introduced as part of the Finance Act 2018 for the taxation of untaxed profits distributed as dividends. The measure is included in a new section 7A of the Income Tax Act, which provides that where a dividend is distributed out of gains or profits on which no tax is paid, the company distributing the dividend shall be charged to tax in the year of income in which the dividends are distributed at…