Four of us are running a private limited company, where majority of holding( around 95%) is with us. We were investors and are also currently employees of company. We have some retained earnings after Tax is paid. If we want to distribute some of that profit to four of us ( as owners ), should we again pay divident disribution tax ? My question is becuase, we already have paid 30% of corporate Tax on the same. Is this not like double taxation ?
yes you can declare interim dividend and provision for dividend tax is a separate provision so you have to pay it whether corporate tax paid or not. please check provision of AOA
If you want to save tax then first check whether you fall under 20% or 30% tax bracket. If Yes then declaring dividend will be useful because the company will have to pay tax @ 15%
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