Pakistan, July 21 -- The Supreme Court has ruled that dividend income received by companies shall be subject to the tax levied under section 5 of the Income Tax Ordinance 2001, and it cannot be brought under the purview of the 35 percent normal corporate tax.

A two-member bench comprising Chief Justice Yahya Afridi and Justice Aqeel Ahmed Abbasi dismissed nine civil petitions filed by the Commissioner Inland Revenue, Large Taxpayers Office Islamabad, thereby upholding the Islamabad High Court's judgment dated September 19, 2024.

Justice Aqeel Ahmed Abbasi authored the verdict, which was reserved on July 3, 2026. The judgment stated that section 5 of the Income Tax Ordinance 2001 is a special and self-contained legal provision for taxing...