@BdAfrica

Listing firms to cede 40pc stake to enjoy tax cut in bill - 9 months ago, 17 Maý 07:45

By: Charles Mwaniki

Business owners taking firms public via a stock market listing will have to cede at least a 40 per cent stake to qualify for a lower corporate tax, according to a new less generous Income Tax Bill.

The draft bill says those listing the 40 per cent of shares will get to pay 25 per cent corporate tax for five years, compared to 30 to 35 per cent for other companies.

Under the existing law that the Treasury wants to repeal, companies listing 40 per cent of issued shares get an incentive of paying 20 per cent in corporate tax for five years.

Those listing 30 per cent stake get to pay 25 per cent tax, similar to firm’s listing via introduction.

The amendments therefore collapse the different tax incentives into one, potentially making listing by family-owned firms less attractive for the owners who would like to retain a greater degree of control ...
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