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 LYN stock market FAQs & Guide, T+3, Dividends, commissions/fees, etc...

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smartly
post Jul 7 2009, 03:41 PM

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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....  rclxub.gif
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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.
smartly
post Jul 7 2009, 04:13 PM

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QUOTE(kmarc @ Jul 7 2009, 03:51 PM)
Ermmm..... I don't understand the term "regross". Can explain a bit aaa?  blush.gif

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....  rclxub.gif

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?  rclxub.gif


Added on July 7, 2009, 3:52 pm

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

smartly
post Jul 26 2010, 02:42 PM

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QUOTE(PikachuPikachu @ Jul 26 2010, 02:10 PM)
dear friends,

thanks for the informative info..

i would like to ask a bit about right issue.. after i read through the 1st page.. i noticed this..

Choices available to you as a shareholder
As stated above, these are the options available:

1) Buy the new shares (rights issue) - Take up your "rights" to buy the new shares
2) Do not take up the offer (also known as allow the rights to lapse)
3) Sell your rights to other investors

Let's say company A giving rights issue, i don't have to buy it but sell it directly??

Another thing is if i allow the rights to lapse, means that i would loss money due to dilution of mother share??

If i am using online trading, how am i gonna buy the right issue??

hope to hear from u guys soon.. TQ!
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Let's say company A giving rights issue, i don't have to buy it but sell it directly??
You must first have the mother share to entitle the RI. Yes, you can sell it directly once the RI is alloted to you.

Another thing is if i allow the rights to lapse, means that i would loss money due to dilution of mother share??
Yes.

If i am using online trading, how am i gonna buy the right issue??
Assuming you don't have mother share, then buy straight from the online when RI go listing, then you will receive form to exercise your right.

This post has been edited by smartly: Jul 26 2010, 02:50 PM
smartly
post Sep 4 2010, 07:45 PM

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QUOTE(t5t @ Sep 4 2010, 06:10 PM)
Hi there! Can anyone please explain the following announcement to me?

"  9261    GADANG    GADANG HOLDINGS BHD 
GADANG - NOTICE OF RIGHTS ENTITLEMENT 

LISTING'S CIRCULAR NO. L/Q :  58170 OF  2010
RENOUNCEABLE TWO-CALL RIGHTS ISSUE OF UP TO 78,677,194 NEW ORDINARY SHARES OF
RM1.00 EACH (SHARES) IN GADANG (RIGHTS SHARES) ON THE BASIS OF TWO (2)
RIGHTS SHARES FOR EVERY THREE (3) EXISTING SHARES IN GADANG (GADANG SHARES)
TOGETHER WITH UP TO 19,669,299 FREE DETACHABLE WARRANTS (WARRANTS) ON THE
BASIS OF ONE (1) WARRANT FOR EVERY FOUR (4) RIGHTS SHARES HELD IN GADANG AT AN
ISSUE PRICE OF RM1.00 PER RIGHTS SHARE, OF WHICH THE FIRST CALL OF RM0.65 IS
PAYABLE IN CASH ON APPLICATION AND THE SECOND CALL OF RM0.35 IS TO BE
CAPITALISED FROM GADANGS SHARE PREMIUM AND RETAINED PROFITS ACCOUNTS (RIGHTS
ISSUE).
Kindly be advised of the following :
1)  The Rights commence of trading : [ 7 September 2010 ]
2)  The Date of Despatch of the Prospectus and Provisional Allotment Letter of
Offer :
      [ 8 September 2010 ]
3)  The last day and time for Acceptance, Renunciation and Payment :
      [ 23 September 2010 @ 5:00pm ]
4)  The Rights cease quotation : [ 15 September 2010 ]
The Stock Short Name, Number and ISIN Code [ GADANG-OR, 9261OR and MYL9261OR001] respectively"

Your help is much appreciated. Thank you.
*
in short, if u own 3000units gadang, you will get 2000units RI and free 500units warrant.
2000units RI got to pay RM0.65 for each 1000units if u wish to subscribe the right. total will be 0.65 x 2.

formula :-
3000 : 2000 : 500
6000 : 4000 : 1000
;
;
;

smartly
post Sep 7 2010, 11:55 AM

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QUOTE(t5t @ Sep 5 2010, 12:47 AM)
Thanks smartly! I am new to stock markets. However, I have some questions:

1) I have already bought some Gadang shares online. In your opinion, buying the rights is a good decision or bad decision? How does it affect the stock price? I would incur more loss/profit by buying the rights or not buying the rights? Please advise.

2) How do I buy the rights now?

Thanks!
*
i did not go in detail, judging on surface, gadang is a profit company so far.
think it is okay to subscribe to right but u will subject to price adjustment.
you may suffer more loses for start, if the forecast earnings is good when price recover
you will tend to gain more with more units on hand.
i m saying just on general statement, nothing is sure in stock mkt.
you get free warrant as consolation, hopefully this can cover some price adjustment downward.

you will get a form to fill up when subscribing to right shares. contact your remisier for details.

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