PSX Dividend Tax
Calculate net dividend after withholding taxFBR Rules
Dividend Details
Input your shares and declared dividend
Filer Status
Determines your tax slab
Net Dividend
Amount in your Bank
Rs.12,750
Gross DividendRs. 15,000
Withholding Tax (15%)- Rs. 2,250
Tax is automatically deducted by the company/CDC before the dividend is credited to your bank account.
Understanding Dividend Tax on the PSX
When a company listed on the Pakistan Stock Exchange (PSX) distributes its profits to shareholders, this distribution is called a dividend.
How is it Taxed?
The FBR treats dividend income under the Final Tax Regime (FTR). This means the tax is deducted at the source before the money even hits your bank account.
- Active Taxpayers (Filers): The company will deduct 15% of the gross dividend as tax.
- Non-Filers: The company is required by law to deduct a heavy penalty rate of 30%.
Do I need to pay more tax later?
No. Because it falls under FTR, the tax deducted at source is considered your final liability for that specific income. You just need to declare the gross dividend and the tax deducted in your annual wealth statement.
Frequently Asked Questions
Under the current FBR regulations, the withholding tax on dividends from companies listed on the PSX is 15% for active taxpayers (Filers) and 30% for Non-Filers.
No, dividend tax is generally treated as a Final Tax Regime (FTR) or full and final discharge of tax liability for individuals. You do not need to pay additional tax on this income, but you cannot claim refunds against it either.
Dividends from mutual funds and REITs also generally attract a 15% tax for filers and 30% for non-filers, though there are specific exemptions for certain types of specialized funds.