Dividend distribution tax exemption where holding company passes on subsidiary dividends after subsidiary paid distribution tax, preventing double taxation. Where a holding company receives a dividend from a subsidiary and the subsidiary has paid the dividend distribution tax payable on that dividend, if the holding company distributes the same amount as dividend in the same year, that amount shall not be subject to dividend distribution tax; the provision removes the previous restriction that the holding company must not itself be a subsidiary.
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Provisions expressly mentioned in the judgment/order text.
Dividend distribution tax exemption where holding company passes on subsidiary dividends after subsidiary paid distribution tax, preventing double taxation.
Where a holding company receives a dividend from a subsidiary and the subsidiary has paid the dividend distribution tax payable on that dividend, if the holding company distributes the same amount as dividend in the same year, that amount shall not be subject to dividend distribution tax; the provision removes the previous restriction that the holding company must not itself be a subsidiary.
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