Income Tax on Dividends
By Nicci Courtney-Clarke · Updated
When receiving a Dividend from a Company (as a Shareholder). The Shareholder is taxed at 20% of the value on the dividend paid. If you're also earning a regular salary and paying PAYE monthly, would such dividends paid, be subject to additional Income Tax?
So, basically, would regular Individual Income Tax also apply on the dividend again after paying the 20% Dividend Tax?
So, basically, would regular Individual Income Tax also apply on the dividend again after paying the 20% Dividend Tax?
No, the dividend is only taxed at the 20% rate and not at the employees tax rate too.