- DISPENSATORY LEVY
This deduction is made directly by the organisation managing the dividend payment and avoids the taxpayer having to add income from shares to his taxable income. - DIVIDENDS
Dividends are used to reward shareholders; in general they are distributed from the net income of the period just ended, but can also be distributed from income brought forward or from reserves from previous years. The gross dividend is equal to the amount of dividend distributed by the business, plus the tax credit (a tax deduction which benefits the shareholder). - DIVIDEND DISTRIBUTION
The dividend distribution rate is the percentage of the net income for the period which is distributed to the shareholders in the form of dividends.
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