QUOTE(kmarc @ Jul 8 2009, 08:08 PM)
My question is:
1) Is the "less tax" now 25%, 26% or 27%?
2) We only receive RM73, but why declared RM100? Is it because the RM27 was taxed?
3) If our income tax bracket was 13%, then we can claim back RM14 right? How do we claim this back? Is this the same as the "E10) Tolakan cukai seksyen 110 (dividen)" in the income tax form?
4) By looking at the dividend certificate (subsidiary income tax certificate), how do we know whether that dividend is taxable or not?
Basically, what I'm driving at is to understand the whole process and to explain it as simple as possible - from the point of a shareholder receiving dividend to how he file the income tax returns to how to claim back if the tax bracket is lower.
Maybe you can give a better example/explanation?
Something like your example:
Company declare dividend of 10% less tax
You hold 1000 shares of RM1 each : Receive RM100
But 27% tax so actually receive only RM73
Declare RM100 as dividend during income tax filing
Tax bracket 13% so can claim back 14% (RM14)
Claim is through.....
1.The rate varies according to the basis year,Y/A 2003 to Y/A2006 was 28 %,Y/A 2007 was 27 %,Y/A 2008 was 26 % and Y/A 2009 is 25 %.
2.The RM27 is the tax paid by the company to the IRB.
3.You setoff the RM27 against your tax payable and the unutilised amount will be refunded.
4.I don't use Nominee CDS so I have no idea on the subsidiary income tax certificate.Normal Dividend warrant is quite straight forward and it clearly states whether the dividend is taxed,TE or single tier.
As for the example/explanation,I am kind of lazy and hope other forumers can help you out.
Sorry for the late reply as I 've missed your post.