According to the Income Tax Act, the rate of Withholding Tax on deemed dividends is five percent for residents and 15 percent for non-residents.
By
Julians Amboko
Contributor
Nation Media Group
The National Assembly's Departmental Committee on Finance and National Planning has differed with the National Treasury over a proposal to empower the Kenya Revenue Authority (KRA) to deem a prescribed threshold of undistributed income as distributed dividends to shareholders and, therefore, subject the same to Withholding Tax.
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ICPAK noted that the current PAYE bands are narrow, subjecting low-income earners to higher rates.
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