New 30pc dividends tax shocker hits investors

A new 30 percent tax on dividends paid by subsidiary companies has caught investors by surprise, sending some firms into a panic distribution of cash to shareholders to beat the effective date of January 1, 2019.

Amendments to the Income Tax Act through the Finance Act 2018 made it a requirement for Kenyan firms to pay a 30 percent tax on dividends received from their subsidiaries once the proceeds are distributed to shareholders.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.