Dividend distribution tax reduction applies to holding company dividends received from subsidiaries and NPS Trust payments. Reduction in dividend distribution tax is available where a domestic holding company receives dividend from a domestic subsidiary that has paid dividend distribution tax, or from a foreign subsidiary on which tax is payable by the holding company. The received dividend is reduced from the dividend declared, paid or distributed by the holding company during the financial year, subject to the condition that the same dividend is not counted more than once and that the holding company holds more than 50% of the equity share capital.