Double taxation of inter-corporate dividends
Reform ID		F710
Description		ICD tax exemption is currently available only under Group Taxation, requiring 100% ownership. Subsidiaries with less than 100% ownership are not eligible; the earlier Group Relief-based exemption, with 55%–75% ownership, was withdrawn in 2021. This leads to multiple taxation of the same profit (cascading effect) within group structures, discouraging holding companies and making intra-group fund transfers costly. Frequent reversals in ICD treatment further create uncertainty for investors.
Department		Federal Board of Revenue - FBR-IRS
Jurisdiction / Location		Federal - Entire Pakistan
Sector		All Sectors
Start Date		03-06-2026
Target Deadline
Date Enacted
Implementation Status		In Progress
Progress		0%
CCORR Direction
Cost Savings PKR (Mil.)
Evidence