KARACHI: A person is not appearing on the Active Taxpayers List (ATL) is liable to pay income tax at 70 per cent dividends during tax year 2022-2023.
The Federal Board of Revenue (FBR) has issued latest withholding tax rates for tax year 2022-2023. The rates have been made part of Income Tax Ordinance, 2001 updated up to June 30, 2022, which were amended through the Finance Act, 2022.
The FBR in its latest withholding tax card, issued rates of tax on dividend income for both persons appearing on the ATL and not on the ATL.
The collection of tax on dividend income is made under Section 150 of the Income Tax Ordinance, 2001. Following are the latest tax rates on dividend applicable for tax year 2022-2023:
| Sub Section and Description | Tax on ATL | Non-ATL |
| (a) Paid by independent Power Purchasers (IPPs) where such dividends is pass through items | 7.5% | 15% |
| (b) mutual funds, Real Estate Investment Trust (RIET) and cases other than (a), (c) and (d) | 15% | 30% |
| (c) Dividend received by a RIET scheme from special purpose vehicle | 0% | 0% |
| (c) Dividend received by others from special purpose vehicle as defined under the Real Investment Trust Regulations, 2015 | 35% | 70% |
| (d) A company where no tax is payable by such company, due to exemption of income or carry forward of business losses under Part VIII Chapter III or claim of tax credits under Part X of Chamber III. | 25% | 50% |
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