Dividends vs Salary Which is Better option for Business Owners to Save Tax in Pakistan | Tax Saving

What’s the most tax-efficient way for company directors to take income? If you run a company. If you’re a business owner, you have the option of paying yourself a salary, dividends or a hybrid of the two. However, you choose to pay yourself depends on multiple business and personal factors. There are upsides and downsides to both. Let’s explore each option in detail.
As with most things in life, the answer to the question “salary vs. dividends” is dependent on many factors. Review your own needs and choose according to what suits your current personal and business situation.
Given the different opportunities and benefits each affords, the choice of paying yourself a salary vs. dividends truly depends on your individual business and personal situations.
Comprehensive discussion on this topic.
#SalaryVsDividends #taxsaving #taxonsalary #TaxOnDividends #taxationist #taxationistcorporateconsultants
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Presenter Profile:
Mr. Khurram Shahzad Aslam is authorized tax practitioner licensed by Federal Board of Revenue [FBR], CMA (Fin) and member Rawalpindi Islamabad Tax Bar Association [RITBA], emanates with extensive past ten years of experience in construction, retail, development sector, telecom and consultancy services with world’s renowned big-wigs like KPMG, RSM International and WTS Global.
Socialize:
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[@zafarfcma]

Comprehensive information on the topic

[@taxationistcorporateconsultant]

Thanks for the appreciation

[@khanjee073]

Very unique and unusual topic and you did great

[@taxationistcorporateconsultant]

🙏

[@muhammadejaz2143]

The only exception to the above general rule is that in case of a company, the tax deducted at source from Dividend is an adjustable tax deducted at source and the dividend subject to deduction of tax or dividend which is exempt from deduction of tax at source, is chargeable to tax, if not otherwise exempt

[@tigertrail3361]

An awaited topic

[@taxationistcorporateconsultant]

Thanks 👍

[@tahiramin1339]

good work sir

[@taxationistcorporateconsultant]

شکریہ وسیم صاحب!

[@SheryMalik936]

Awesome

[@taxationistcorporateconsultant]

Thanks 👍

[@imrananwar9389]

Nice information

[@taxationistcorporateconsultant]

Thanks 😊

[@greenteche3286]

Please also make a video for Sole Proprietors.

[@qamarfaizi35]

Thanks for information

[@taxationistcorporateconsultant]

Thanks 👍😊

[@ranasalman3154]

Sir kindly 3rd schedule items ki MRP value pay discount POS install retailers kaisay dey ga ya nhi or kaisay deal kry gy es pay b 1 video bnay.🙂

[@taxationistcorporateconsultant]

Could be possible through proper programming of POS Softwrere

[@arifkhan-sy1it]

Bhai ye btao k director k pass agar company k shares nahi tou dividend kesay lay sakta hay. Thanks

[@Asadfoursix]

Hi, What if any SMC dont take tax exemption on its IT Export and pay 1% income tax as FTR and than shareholder withdraw profit as dividends and pay 15% u/s 150 instead of 25% ? Is it possible ?

[@taxationistcorporateconsultant]

Ni

[@amirbhatti3929]

Please guide me
We are importer can we sell the goods for cash more than 50000/- without banking chanel

[@rizi16m791]

Salary ky case main admissible expense mily ga company ko? Aur dividend ky case main admissible expense mily ga?

[@taxationistcorporateconsultant]

Only admissible in case of salary, good point you have made

[@sohaibkhalid8691]

If a private limited company pays a 1% income tax as FTR and the shareholder withdraws the dividend, then what will be the tax: 15% or 25%?

[@najeebqureshi4404]

Assalam o Alaikum Sir,
Sir plz let me clear that this tax saving is for Company's Director who are involved in business operation and not for members those are not participating in business operation , may I right sir ?

[@awaismuhammad563]

no, any one can be an employee of a company, so its not special for directors only, members can avail this opportunity

[@inamullahrawash265]

Is there any minimum salary limit for director of pvt ltd company. Can he draw 50000/- which does not fall in any tax slab.

[@taxationistcorporateconsultant]

Yes he can