Free tools
Salary vs Dividend Calculator for Owner-Directors
If you own the company you are paying yourself from, the split between salary and dividend is a real decision with a real number attached. This shows the cost of three ways of taking the same money out.
Free, no sign-up. Every rate comes from the published FBR and provincial schedules.
These rates are pending final verification against the current Finance Act. Confirm with us before relying on them for a transaction.
- Corporate tax
- Rs. 0
- Tax on the salary
- Rs. 0
- Tax on the dividend
- Rs. 0
- Best against worst split
- Rs. 0
Three ways to take the same money
| What it applies to | Total tax | What you keep |
|---|---|---|
| Your split — salary plus dividend | Rs. 0 | Rs. 0 |
| All of it as salary | Rs. 0 | Rs. 0 |
| All of it as dividend | Rs. 0 | Rs. 0 |
This is an estimate based on the published salaried slab rates for the tax year selected. It is not tax advice. Your actual liability depends on allowances, tax credits, other sources of income and tax already withheld from you.
Worth knowing
- Salary is deductible for the company, so it is taxed once. A dividend is paid out of profit that has already borne corporate tax, so it is taxed twice.
- A director's salary has to be commercially justifiable and actually paid, with the withholding deducted and deposited. Declaring a salary you never paid is not planning.
- This ignores the company's own cash needs. The cheapest split on paper is not always the one your business can afford.
Want the real number, not an estimate?
A calculator works from the figures you give it. Your actual position accounts for allowances, credits, other income and every rupee already withheld from you — which is frequently more than the tax you owe.
Tax Planning for Individuals, Startups & BusinessesGet a fixed quote
Send us your details and we'll come back with a firm price and what we need from you. No obligation.
Other calculators you may need
One question usually leads to the next. These are the tools people open after this one.
Sole proprietor vs company calculator
The same profit taxed three ways: sole proprietor, AOP and private limited company.
Open the calculatorPayroll cost calculator
What an employee really costs: gross, EOBI, social security, and the tax you must withhold.
Open the calculatorCompany registration cost calculator
SECP fees by authorised capital, plus digital signatures and stamp duty.
Open the calculator