Oct 27 2013, 12:25 AM
QUOTE(topearn @ Oct 25 2013, 03:12 PM)
Yet another advantage of investing in this bond. Dividend on shares sometimes tax at source and U then need to claim back the over-payment - meaning U still need to pay at your current tax bracket, right ? Any idea what would be the tax bracket for someone earning RM5,000 per mth ?
From 2014 onwards, we're moving to single-tier taxation for dividends. All dividends are taxed at source, and not taxable at the hands of shareholders.In the previous regime of franked dividends, if your personal income tax level is say 15% and corporate tax rate is 26%, you are able to claim back the 11% difference.
In the single-tier regime, even if your tax bracket is 0%, your dividends will still be hit with the corporate tax rate and you cannot claim back anything.
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