Welcome Guest ( Log In | Register )

Outline · [ Standard ] · Linear+

 ASX COUNTERS !, Everything related to the Aus Sec Exc !

views
     
Vector88
post Feb 3 2017, 12:05 PM

Enthusiast
*****
Senior Member
817 posts

Joined: Aug 2012
QUOTE(elea88 @ Feb 3 2017, 11:19 AM)
custody fee will apply for foreign shares held in your DBSV Online trading account.
Custody Fee (charged quarterly)  SGD 2 per counter per month, capped at SGD 150.00 per quarter.

Waiver based on combination of Singapore & foreign market transactions:
  (a) 2 x transactions per month
  (b) 6 x transactions per quarter
the dividend collection fees is as follows.

1% net div; Min AUD 5
So, if i buy CUP at .82 x 5000 units = AUD 4100.00

Dividend collected will be : .08 x 5000 = AUD 400 (estimated)
My cost will be :

Brokerage : AUD 30

SGD2 per quarter (maybe can be waived since i think i hv more than 6x transaction per qtr base on Singapore transactions)

4x div = AUD20 (for collection fees)
Is this calculation correct?

any other expenses?

How the tax thing work?
*
As I understand, foreigners are slapped with 30% withholding tax flat ... so u need to take 30% off from the dividend u received.
Vector88
post Feb 3 2017, 04:51 PM

Enthusiast
*****
Senior Member
817 posts

Joined: Aug 2012
QUOTE(elea88 @ Feb 3 2017, 12:40 PM)
wah. after deducting the 30% dividend.. then whats the point in investing in ASX shres?

Is this AUTO DEDUCTED?
*
I believe so ... but let the sifus who had experience in ASX confirm...

For Aus tax residents it is good cos the franked portion of the dividend can be deducted against ur personal income tax ..eg: if franked dividend is 100% and ur personal income tax in aus is 40%, u will pay only 10% tax on the dividend u received cos 30% tax is alreaady incurred on the dividend at corporate level...not sure I used the right terms above, but something like that... smile.gif

This post has been edited by Vector88: Feb 3 2017, 04:52 PM
Vector88
post Feb 3 2017, 07:00 PM

Enthusiast
*****
Senior Member
817 posts

Joined: Aug 2012
Further reading on the withholding tax for dividends received from ASX stocks, I am getting conflicting info... In the Australia tax office website, it says this:

https://www.ato.gov.au/Individuals/Internat...-and-royalties/

It seems that only unfranked dividend is subject to 30% withholding tax, franked dividend may not be the case??

any sifu can enlighten on this matter?


Vector88
post Feb 6 2017, 08:58 PM

Enthusiast
*****
Senior Member
817 posts

Joined: Aug 2012
QUOTE(Showtime747 @ Feb 6 2017, 09:12 AM)
Unfranked dividend means gross dividend before tax. franked means net. So for non-resident, you get 70% of the declared dividend and call it a day. Don't even need to file tax returns.

Even the tax resident there received net dividend (ie. 30% less). Then in their tax returns they impute the gross dividend into their declare income and recalculate the tax payable.

If the chargeable income is <37k, then they enjoy the franking credits and can claim back/offset the chargeable income to reduce tax payable. But if more than 37k, they have to top up the tax because the tax rate is >30%
*
bro..how come this link from Aus tax office says that foreigners do not need to pay withholding if it is a franked dividend?

https://www.ato.gov.au/Business/PAYG-withho...eign-residents/

You must issue a statement to your shareholder or payee that indicates the extent the dividend is franked or is conduit foreign income. You do not have to withhold tax if the dividends you pay have been fully franked or they are conduit foreign income.

confused

Vector88
post Feb 7 2017, 08:29 AM

Enthusiast
*****
Senior Member
817 posts

Joined: Aug 2012
QUOTE(Showtime747 @ Feb 6 2017, 11:11 PM)
A franked dividend means 30% tax/franking credit has been deducted. By disallowing non-tax-resident claiming the franking credit, it means the foreigner has paid the 30% tax. Same effect as 30% withholding tax on unfranked dividend

Are you familiar with 2 tier dividend system ? Malaysia and Singapore only changed to 1 tier dividend system not long ago. For malaysia I think it was introduced in 2009, and made compulsory since 2013. It is better to understand the 2 tier franking credit dividend system in order to understand how ATO treats the dividend income for both tax-resident and non-tax-resident.

I still remember for my malaysian company dividend income prior to the 1 tier system, we have to prepare a list of dividend income from the dividend vouchers receive via snail mail. If you receive 50 dividends vouchers, then you have a long list. Unlike now our submission is online, the tax computation last time was very thick with all the supporting documents including all the dividend vouchers  biggrin.gif 

Now 1 tier dividend, we just throw away the dividend vouchers. As there is nowhere for us to declare dividend income in the tax returns anymore.
As for conduit foreign income, it is the income earned by the company overseas. For Australian tax, this foreign income earned and paid to a non-tax-resident is exempted (ie. no withholding tax). Hence the word "conduit". The company will segregate the conduit foreign income declared as dividend and the on-shore income declared as dividend. So, there is no tax to non-tax-resident for dividends declared from overseas income, and 30% tax for dividends declared from on-shore income.

But for tax-resident, although the amount is unfranked (ie gross), the gross dividend has to be included as income in the tax computation to arrive at the chargeable income and be subjected to tax
If you still feel confused, that may be because you don't understand 2 tier dividend franking system. Try to understand that first and then everything will clear up
*
Thanks bro... !! so bottom line, for non tax residents, we will need to take 30% off the dividend declared, whether franked or not... right?


 

Change to:
| Lo-Fi Version
0.0494sec    0.30    7 queries    GZIP Disabled
Time is now: 1st December 2025 - 04:54 AM