Do companies automatically deduct tax from your dividends?
Question by Steve C: Do companies automatically deduct tax from your dividends?
If you hold, say, shares in BP and they pay you a dividend of £500, do they automatically pay the tax on that for you?
And are the “tax credits” they give you with the dividend equal to this – what can one write these tax credits off against?
Best answer:
Answer by William C
You need to request the payer of the dividend to deduct any percentage you want to cover potential taxes. Or, you can have none deducted and pay at the end of the year.
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