Supreme Court upholds 10% tax regime on corporate dividend income
The Supreme Court of Pakistan has upheld the tax treatment of dividend income received by companies under Section 5 of the Income Tax Ordinance, 2001, ruling that such income is taxable at the prescribed dividend tax rate of 10% and cannot be subject
July 20, 2026 (MLN): The Supreme Court of Pakistan has upheld the tax treatment of dividend income received by companies under Section 5 of the Income Tax Ordinance, 2001, ruling that such income is taxable at the prescribed dividend tax rate of 10% and cannot be subjected to the normal corporate tax rate of 35% under the head "Income from Other Sources." In a nine-page judgment authored by Justice Aqeel Ahmed Abbas...