DT14956 | Double Taxation Relief Manual : Pakistan: dividends

Relief for Pakistan underlying tax is available only if the United Kingdom recipient of the dividend is a company controlling, directly or indirectly, 10 per cent of the voting power of the Pakistan company.

Pakistan direct tax on the dividend is restricted as follows

• where the recipient is an individual: 20 per cent

• where the recipient is a company controlling more than 50 per cent of the voting power of the payer and the payer carried on an `industrial undertaking' when the agreement came into force: 10 per cent.

• Where the industrial undertaking was set up later the control requirement is reduced to 25 per cent of the voting power. `Industrial undertaking' is defined in Article 10(4)(b).

• where the recipient is a company other than those referred to above: 15 per cent.