The term "dividend" includes:
- Any dividend paid by the company including a capital dividend;
- Any other cash or non-cash distribution in respect of shares of the company, except repayment of share capital or an amount equal to issue of share capital for any new consideration;
- Any redeemable share capital or security issued by the company in respect of shares in the company to the extent that such share capital or security is not issued for a new consideration; and
- Certain kinds of expenditures when paid by a close company, (i.e., a company under the control of five or fewer participants/ directors and meeting certain other parameters), to a participator (i.e., a shareholder/ any person holding interest in the capital/profits of the company).
The term "royalty" includes amounts paid for the use or the right to use:
- Copyrights, artistic or scientific work, patents, designs, plans, secret processes or formulae, trademarks, motion picture films, films or tape for radio and television broadcasting or other like properties or rights; and
- Information concerning industrial, commercial or scientific knowledge, experience or skill.
The term "interest" includes:
- Amounts earned on loans secured by bonds and similar instruments;
- Any discount earned on treasury bills; and
- Any charge or annuity other than an annuity paid out of a superannuation fund.
The term "service fees" includes management charges or charges for the provision of personal services, technical and managerial skills.
The term "capital gains" includes gains arising from:
- Any change in ownership of property arising due to a sale, disposal, transfer, realization or exchange etc.;
- The surrender or relinquishment of any right or the transfer of some of the rights in any property;
- The redemption of any shares, debentures, or other obligations;
- The dissolution of a business or the liquidation of a company
- The amalgamation or merger of two or more companies;
- The formation of a company; and
- Any reward or commission received pursuant to any transaction without being a party to it