Withholding tax on Dividend

Withholding tax on dividend

Withholding tax on dividend [Section 150, Division I of Part lii of the First Schedule]

After amendments in Division I of Part III of the First Schedule, there are now two withholding tax rates on payments of dividends 7.5% and 15% for persons whose names are appearing on the active taxpayers’ list.

It is 7.5% if the dividend is paid by IPPs where the dividend is a pass through item under an Implementation Agreement or Energy and which is required to re-imbursed by the CPPA-G or the CPPA-G’s successor or predecessor. Withholding tax rate is 15% for other dividends.

These explanations have been issued by FBR after the Finance Act 2019 approved / passed from the parliament of Pakistan.

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