Dividends being paid as an annuity will be exempt and subject to Dividend witholding tax.Question 4Select one:TrueFalse

The statement "Dividends being paid as an annuity will be exempt and subject to Dividend withholding tax" can be analyzed as follows:

Analysis

1. Understanding Dividends and Annuities:

   • Dividends are typically distributions of a corporation's earnings to its shareholders.
   • An annuity is a financial product that pays out a fixed stream of payments to an individual, usually over time.

2. Tax Implications:

   • In many jurisdictions, dividends are subject to withholding tax.
   • The exemption from withholding tax often depends on specific conditions or the nature of the payment.

Conclusion

Given the general understanding of dividend taxation, particularly regarding the potential tax exemptions and the application of withholding tax, it is unlikely that dividends paid as annuities would be exempt from withholding tax.

Final Answer

False