i. Dividend income
This dividend income is taxed at source at a withholding tax rate of 5% which is a final tax, but where received from a co-operative society other than from a sacco the withholding tax is at 15% which is not a final tax and gross amount is taxed if the
resident company is receiving dividend from a company where it controls more than 12.5% of share capital the dividend income is exempt from taxation
ii. Interest income
The interest income is taxed at source at a withholding tax rate of 15% which is not a final tax. The gross amount is added to other income and taxed at 30%.However the tax deducted art source is subtracted from the corporation tax liability
iii. Rent income
The net rental income is added to other income and taxed at the corporation tax rate of 30%.To arrive at net rental income allowable deductions are made from gross rent received.
Wilfykil answered the question on February 15, 2019 at 10:40
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