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Glossary · PSX term

Net dividend.

A net dividend is the cash you actually receive after withholding tax is taken out.

Definition

In Pakistan, dividends are subject to withholding tax that differs for tax filers and non-filers, so the net amount depends on your filer status. Comparing net rather than gross dividends gives a truer picture of income.

Worked example

On a Rs. 5 gross dividend, a filer taxed at 15% receives Rs. 4.25 net per share.

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