Which tax is payable by companies when dividends are declared by them ?

Dividend distribution tax

The correct answer is option (2) : Dividend distribution tax

The tax payable by companies when dividends are declared by them is :

(2) Dividend distribution tax

Companies are required to pay a dividend distribution tax when they declare and distribute dividends to their shareholders. This tax is is imposed on the company, and the rate may vary based on the applicable tax laws and regulations in the respective country.

It is distinct from personal income tax and is specific to the distribution of dividends by companies.