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