Quote:
Originally Posted by Stockbear
My people I need your help on this one! Consider me ignorant and possibly foolish, but I was under the impression that DSR was enjoying a tax hloliday which even after its expiry, can still be extended even further.
If this is so, then why include a tax deduction before issuing/calculating of dividends? If the tax break exists then Dangote just screwed us out of some good money by pocketing it for himself! Am I wrong!!!
Please someone, everyone, enlighten me!
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By legislation, dividends are considered as income and are taxable at 10%. This is irrespective of the tax status of the company paying the dividend. So a company may be enjoying a tax holiday, but the IRS still expects them to withhold and remit taxes on dividends, since the dividends are considered income to the shareholders (think of the withholding tax as a form of income tax payable by the shareholder).