The Finance Act, 2018 introduced a tax at corporate rate on untaxed gains or profits from which dividends are distributed with effect from 1st January
2019.This amendment was intended to repeal the requirement by companies to maintain a dividend tax account. Therefore, compensating tax which would be chargeable on distribution of untaxed gains or profits was also abolished.
This change came into place to ensure that any dividends distributed from untaxed gains are subjected to tax at the appropriate rate.
