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Tax from Associate dividend

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Tax from Associate dividend

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by Tax Tutor.
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  • Author
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  • January 22, 2016 at 10:39 am #297179
    sojacca
    Member
    • Topics: 1
    • Replies: 4
    • ☆

    Is this taxable even if its from an associate?

    January 23, 2016 at 9:20 am #297519
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    Not sure if you have already received a part complete answer to this question but let me now give you full answer and hope my computer works properly this time!!

    I assume that you refer to a company receiving a dividend from an associated company?

    Dividends received by a company are NOT taxable but are usually included within the calculation of FII which is added to TTP to derive Augmented Profit,

    This is where the difference arises as dividends received from associated companies are EXCLUDED from the FII calculation.

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