Dear Readers,

As per Prakas No. 518 dated May 5, 2017 “the instruction of withholding tax on dividend” of the Ministry of Economy and Finance instructed to the Company who wishes to distribute its dividend as follows:

  • Dividend distributed to non-resident is subject to 14% withholding tax
  • Transferring retained earnings to registered capital or reserved capital is not considered as dividend distribution.
  • Retained earnings distributed or transferred to other parties during the share disposal or in case, the retained earnings distributed at the time of ceasing business is subject to 14% withholding tax if it is distributed or transferred to non-resident.

The withholding tax is required to remit to tax administrative by 20 days of the following month.

PAT Professional Team

Please download

Prakas 518_ Withholding tax on Dividend _ guideline