dividend income Archives

Tax Collection from Dividend Surges 32% in First Four Months of Fiscal Year 2023-24

November 24, 2023May 1, 2026Shahnawaz Akhter

Karachi, November 24, 2023 – The withholding tax collection from dividend income has experienced a remarkable increase of 32 percent during the initial four months (July – October) of the fiscal year 2023-24, according to provisional data from the Large Taxpayers Office (LTO) in Karachi.

Pakistan Imposes Up to 70% Tax on Dividend Income for Non-ATL Recipients

August 3, 2023August 3, 2023Shahnawaz Akhter

Karachi, August 3, 2023 – Pakistan Federal Board of Revenue (FBR) has implemented a new tax regime for the fiscal year 2023-24, which includes significant changes in the tax rates on dividend income.

Section 5 of Income Tax Ordinance, 2001

July 18, 2021December 19, 2023Hamza Shahnawaz

ISLAMABAD: Section 5 of Income Tax Ordinance, 2001 deals with income of a persons who receives dividend from a company.

Tax law defines dividend income

February 13, 2021February 14, 2021Mrs. Anjum Shahnawaz

Income Tax Ordinance, 2001 has defined types of income included in dividend distribution for the purpose of tax levy. The Income Tax Ordinance, 2001 updated up to June 30, 2020 issued by the Federal Board of Revenue (FBR), explained that dividend includes — (a) any distribution by a company of accumulated profits to its shareholders, […]

Withholding tax rates on dividend income updated for tax year 2021

August 3, 2020August 3, 2020Mrs. Anjum Shahnawaz

ISLAMABAD: Federal Board of Revenue (FBR) has updated withholding tax card for dividend income to be applicable during Tax Year 2021 (2020-2021). The FBR issued the withholding tax card 2020-2021 (updated up to June 30, 2020) after incorporating amendments made to Income Tax Ordinance, 2001 through Finance Act, 2020. Under Section 150 of Income Tax […]

Uniform income tax rate applied on dividend income

January 15, 2020November 2, 2022Mrs. Anjum Shahnawaz

ISLAMABAD: The income tax rates on dividend income on various shares of companies have been increased to make an uniform rate applicable for tax year 2020 and onwards. Sources in Federal Board of Revenue (FBR) said that the various rates of dividend rates had been uniformed at 15 percent. Prior to budget 2019/2020 dividend income […]

Withholding Tax Card: non-ATL persons to pay 30pc tax on dividend income

July 19, 2019March 28, 2021Mrs. Anjum Shahnawaz

KARACHI: Federal Board of Revenue (FBR) has issued withholding tax card for tax year 2019/2020 effective from July 01, 2019 under which person not appearing on the Active Taxpayers List (ATL) shall pay up to 30 percent on dividend income. According to documents made available to PkRevenue.com, the FBR said that every person paying dividend […]

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