Dividend withholding tax requires domestic companies to deduct before distribution, covering equity and preference dividends without a payment threshold.

Domestic companies declaring dividends, including equity and preference-share dividends, must deduct tax at source at 10%. No threshold applies, so deduction is required irrespective of the dividend amount. Tax must be deducted before distribution or payment of the dividend under the specific timing requirement applicable to dividend payments. An exception from deduction is cross-referenced under Section 393(4), Serial No. 10.

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