KARACHI: Federal Board of Revenue has sought dividend payers to collect 20 percent withholding tax from non-filers of income tax returns on the gross amount of dividend.
According to Withholding Tax Rate Card for Tax Year 2018, the FBR said that every person paying dividend is required to collect 15 percent from filers at the time the dividend is actually paid.
The FBR has also issued the withholding tax rates for collective investment, REIT Scheme or mutual fund. The FBR said that 12.5 percent withholding tax is required to collect on stock fund from individual, company and Association of Persons (AOPs).
In case of money market fund, income fund or REIT scheme or any other fund a return filer taxpayer is required to pay, in case of individual 12.5 percent, company 25 percent and AOP at 12.5 percent. However, in case of non-filer these rates will be 15 percent, 25 percent and 15 percent respectively.
