QUOTE(kmarc @ Jul 7 2009, 03:01 PM)
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....
A1 - You need to do regross while declaring your income tax.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....
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.