01-24-2010, 04:15 AM
Dear Star
Read the section 5 and section 8 of the income tax ordinance 2001,Section 8 clearly state that this section shall not apply to a company.This means that dividend received by a company will be taxed under the normal tax regime but subject to tax at the rate of 10%.
And the loss incurred by the company can be sett of against the dividend income.
In case of loss the tax deducted on dividend will be refundable to the company
Regards,
Majid
Read the section 5 and section 8 of the income tax ordinance 2001,Section 8 clearly state that this section shall not apply to a company.This means that dividend received by a company will be taxed under the normal tax regime but subject to tax at the rate of 10%.
And the loss incurred by the company can be sett of against the dividend income.
In case of loss the tax deducted on dividend will be refundable to the company
Regards,
Majid
