Foreign companies with shares listed on domestic stock exchanges will now be required to pay taxes on capital‑gain transactions that are executed on foreign trading platforms, a policy shift the government says is aimed at closing loopholes and ensuring a level playing field for domestic investors. Effective from the next fiscal quarter, the standard corporate tax rate will apply to these cross‑border trades, part of a broader effort to modernize the tax framework and prevent base erosion. Analysts have welcomed the move as a correction of a long‑standing disparity, while some international investors worry about increased compliance complexity and potential impacts on portfolio flows. The finance ministry stresses that the regime will be transparent and non‑discriminatory, and early market reactions have been muted, with major indices remaining stable; brokers are urging investors to consult tax professionals to navigate the new requirements. (ICE NAIROBI)

Fonte notizia: Business Daily