QUOTE(kmarc @ Jul 7 2009, 06:15 PM)
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?
I think all wrong 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?
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