Regarding the T+3 date .. I call my remisier (I didn't know they are dealer or remisier)

1) Buy on Wednesday. Call my dealer/remisier to ask the force sell date. He tell me that I can sell the stocks before 12 noon at Tuesday.

But isn't that ...

Day

T - Wednesday
T1 - Thursday
T2 - Friday
T3 - Monday
T4 - 12 noon on Tuesday


It's already T+4?


Note : I'm using ITrade

This post has been edited by Irzani: May 24 2009, 10:20 PM

To give some helping hand,you are free to use my postings in my blog.There's some explaination on Single tier tax and imputation system.

This post has been edited by lklatmy: May 24 2009, 11:56 PM

Thx! I read your blog and don't understand the calculation part.

Anyway, I haven't done the "Dividend & Tax" part yet. Will consult your expertise when I'm doing it.

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Added on May 25, 2009, 11:51 am

Should be Monday 12 noon leh..... maybe he gave you extension? Can you confirm with your remisier why it is not Monday 12 noon?

This post has been edited by kmarc: May 25 2009, 11:51 AM

ignore distraction



This post has been edited by aurora97: May 26 2009, 08:44 PM

Thx. Not too sure whether want to do a guide on warrant or not....

U can work on that later. Finish one by one first lo. Can u ask some sifu's to help you do up the other parts as well? Can't do this all on your own man. I'm sure they'd be glad to as a lot of people keep asking the same questions to them every day of the week, so this will hopefully reduce the numbers.

This post has been edited by omores: May 26 2009, 07:32 PM

Yeah, have to finish one subtopic before going on to the next one.

Already ask our good forumers to come in a help. Just that our sifus busy playing stocks.....

Suddenly on 10am on Monday, they give me sms to top up the current balance. So, I have to cut loss on that time since no time to go bank. Damn, in the FAQ you should put ask the remisier/dealer to confirm for at least 3-5 times.

This post has been edited by Irzani: May 27 2009, 04:50 AM

Got mentioned that you need to ask for extension leh.... however, maybe your remisier gave you the extension but the sms is automatic?

I have highlighted that part for possible future confusion....

This post has been edited by kmarc: May 27 2009, 06:42 AM

Not automatic one ... it's from their H/P .. luckily I don't sleep and off my HP on that morning ..

I see... you should scold your remisier for giving you wrong info leh....

Sorry guys. Have been busy this past week. Didn't have time to continue the guide. Will probably be free this weekend.....

This thread is not dead as I plan to finish what I started... just might take some time....

Finally more free to continue on the guide. I'm stuck at the Dividend & Tax subtopic. Need clarification.

Q1:
In the single-tier tax system, I understand that the tax is imposed at the level of the company. So they would declare something like this (right?):

Dividend : 20 cents (25% less tax)

So, if it is already less tax, it is still taxable in the hands of the shareholders in their annual income tax?

Q2:
Why is there tax-exempted dividends? (T.E)

Q3:
If you look at the list of upcoming dividends, only some will have the phrase "Single tier" e.g. Interim dividend 6 sen single-tier.

Why is that? I thought all is single-tier?

Any help is welcome. Giving me a headache....

Q1
Single tier, tax has being incurred at company level based on corporate tax rate which is 25% currently. They will state as single tier

Q2
Dividend can be tax exempted when company utilise the tax credit to offset it.

Q3
Start from 2013, any dividend will be under new single tier. Now we are in transition period of changing from old imputation system to single tier. It depended on individual company situation.

Under old imputation system, low earners will able to claim back the tax or tax differentiate of individual tax bracket.
So single tier is disadvantage to those tax bracket lower than 25%.

A1 - You need to do regross while declaring your income tax.
A2 - Not sure. Maybe on company own discretiom.
A3 - The single-tier tax system was introduces in Budget 2008 to replace d imputation sys with effect from year of assessment 2008. Under tis sys, corporate income is taxed at corporate lvl & tis is a final tax. Companies may declare single tier exempt div that wud be exempt from tax in the hands of thier shareholders.

Ermmm..... I don't understand the term "regross". Can explain a bit aaa?

For A3, I thought all companies come under the single-tier tax system. Doesn't all companies nowadays declare single-tier exempted dividends? Or does some companies still follow the old system?

Do you have any good reference on this? I'm sooooo confused....

Example :

Final Dividend of one company : 5 sen
Final dividend of another : 5 sen T.E
Final dividend of another : 5 sen single-tier T.E

What does all this mean?

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Added on July 7, 2009, 3:52 pm

I see.... that explains everything. Thx!!!

This post has been edited by kmarc: Jul 7 2009, 03:52 PM

The regross thingy....
As cherroy has explained the transitional period from old sys to new sys will happen between 1.1.08 to 31.12.2013...

A "regross" of the div will apply when company fail to deduct tax from YA 1.1.08 to 31.12.2013.
There is a formula to it, please check your income tax return form for detail.

Ok. I'm planning to add a subtopic that covers declaration of dividend in our income tax. Just that I never did that before as my first dividend is in 2009!!!

Anyway, going to put some examples in the guide, as follows :

BKAWAN - Interim dividend 10 sen Single Tier T.E.
KLK - Interim dividend 10 sen Single Tier
ALLIANZ - 1st and final dividend 2 sen

If I understand the STS/TTS correctly,
1) BKAWAN - gives out 10 sen, company not taxed and shareholder no need to declare in their income tax
2) KLK - gives out 10 sen, company was taxed 25% but shareholder no need to declare in their income tax
3) ALLIANZ - gives out 2 sen under TTS, company was taxed and shareholder still have to declare in their income tax.

Am I correct in this?

This post has been edited by kmarc: Jul 7 2009, 06:19 PM

For 3) need more clarification

Company was taxed, but shareholder can claim back the tax if the shareholder total income is not subjected to tax or claim back the differentiate if the shareholder tax bracket is much lower than the corporate tax rate.

I think all wrong
1. TE just to confuse you, actually taxed to company.
2. company tax not necessary 25%, think that's lower, couple with other tax deductible, can be even lower (or higher for some company).
3. TTS? Company got the tax credit to declare dividend & distribute profit to shareholders, shareholders can claim back excess tax paid based on individual tax rate/ bracket.

But I don't think we need in depth knowledge for this topic, as tax is hard for most & the more you provide will only end up confuse more Just know to claim back whatever should be claim back and pay whatever should be pay will do for most of us.

Also no use study tax in depth unless you are really interested or got great benefit by study that, because tax law change almost every year, what you study now might not be applicable in a year or two, waste brain cells