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amount retained post-dividend remittance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › amount retained post-dividend remittance

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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  • February 19, 2021 at 4:36 am #610900
    Jiya024
    Member
    • Topics: 168
    • Replies: 56
    • ☆☆☆

    Dear john sir,

    sir as far as amount retained in a country is concerned after dividends remittance, say 75% of PAT to parents, is it calculated by just multiplying PAT with 25%? Or it is a sum of withholding tax plus the direct corporation tax and plus any remaining PAT after dividend remittance?

    Thank you so much, as always:)

    February 19, 2021 at 8:01 am #610924
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54738
    • ☆☆☆☆☆

    If the dividend is 75% of the profit after tax, then 25% of the profit after tax is retained.

    Any withholding tax on dividends reduces the amount actually remitted (and is paid to the state) – the the total is still 75% and there is still 25% retained.

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