Person paying dividends required to withhold tax

Person paying dividends required to withhold tax

Section 150 of Income Tax Ordinance, 2001 describes person paying dividends required to withhold tax.

The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.

Following is the text of Section 150 of Income Tax Ordinance, 2001:

150. Dividends. — Every person paying a dividend shall deduct tax from the gross amount of the dividend paid or collect tax from the amount of dividend in specie at the rate specified in Division I of Part III of the First Schedule.

Rates of withholding tax on dividend payment can be viewed on the following link:

https://pkrevenue.com/withholding-tax-rates-on-dividend-payment-for-2021-2022/

(Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)

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