It's not "donation" actually. In fact, even in Malaysia, Singapore, Australia or anywhere else, we investors are paying taxes of that country. Just that some you see it (2 tier dividend) and some you don't but you have already paid tax indirectly (1 tier dividend)

1 and 2 tier dividend systems are quite confusing to non-financing or non-accounting background people.

Leaving out the nitty gritty and complicated calculation, as a summary GENERALLY for non-tax resident, an investor's tax burden at the very end is :

Malaysia companies - 24%
Malaysian Reits - 10% (if declare >90% of income as dividend)
Singapore companies - 17%
Singapore Reits - 0% (declare >90% of income as dividend)
Australia companies - 30%
So, as an investor, when Malaysia companies declare dividend, it seems that investors do not need to pay tax. But in fact through company taxation, investors indirectly has paid 24% tax. The dividend we received is from profit which has already paid 24% tax.

Likewise for Singapore, investors already indirectly paid 17% tax on the dividend.

If compare to investment in Australia stock, malaysian investors are paying just additional 6% of tax. Not too bad lah....

Of course, investing in MReits and SReits has the most tax advantage, compared to corporate taxes

So, what DY numbers to use when comparing dividend yield between My/Sg vs Au companies ? For My/Sg, because of the 1 tier system, just use the quoted DY number. For Au, use "net dividend". If only gross dividend number is available, then just use the number x 70% (100%-30% tax)

Minus 30% for both US and AU.

Bro, before that, do you know how Tier-1 and Tier-2 dividend works ?

If you know how they work, then you save me 1 hour to type out the mechanism.

If you don’t know how they work, maybe you google first and ask any question you have....

To answer your question in a nutshell, Tier-1 is good for rich people with personal effective tax rate above corporate tax rate. Tier-2 system is good for “poor” people with personal effective tax rate below corporate tax rate. And more often than not, foreign investors pay less tax than Australian investors in ASX share investment 

Good. If you understand the single tier and two tier system, then you should be able to calculate the difference in tax payable for the following example :

Assumption 1 - single tier
1. Company own by an investor. It makes 10000 profit
2. Tax paid 3000 (ie corporation tax 30%)
3. Declare 7000 single tier dividend

Scenario 1 -
4. investor has a job which pays 10000 salary
5. Personal tax rate - 0 to 20000 (10 %), >20000 (40%)
6. How much total tax did this person pay ?

Ans: 1000 on salary and 3000 tax on divvy at company level = 4000.
Personally pays 1000. Total 4000.

Scenario 2 -
7. Investor has a job which pays 30000 salary
8. How much total tax did this person pay ?

Ans: Personally paid 2000 + 4000 = 6000. Company level paid 3000. Total 9000.

Assumption 2 - two tier

9. Company makes same 10000 profit
10. Tax paid 3000
11. Declare 10000 gross dividend (ie 7000 fully franked dividend)
12. How much is franking credit ?

Ans: 3000

Scenario 1 -
13. Investor has A job which pays 10000 salary
14. Personal tax rate same as above
15. How much total tax did this person pay ?

Personally pays [(10000 + 10000 grosed up divvy) * 10% ] = 2000 less 3000 credit = get tax refund 1000. Company level paid 3000. Total paid 2000.

Scenario 2 -
16. Investor has a job which pays 30000 salary
17. How much total tax did this person pay ?

Personally pays 10,000 less 3000 credit = 7000. Company level paid 3000. Total paid 10,000.

What’s the answers for question 6, 8, 12, 15 and 17 ?

If you understand how 1 tier and 2 tier system works with the above example, then you should be able to know which system is better for investors of different income level

Bro, I guess you are from accounting or finance background. Are you trolling me with your questions in this page ?

The way you asked your question sounds like you are fresh to dividend tax. But you answer it correctly in a flash, is like trying to test me, since clearly you already knew the answer 

For your above question, go google the simple fact of tax rates in Australia and USA, and what dividend system they use. So easy to get the answer through google...It's like in a medical forum, a doctor asking another forummer medical question pretending they don't know anything

I am sure many readers here would appreciate your contribution. Don't pretend to know nothing lah.....

See...you got all the answers you want, by yourself. Just a little bit of googling only....

I spent 1/2 hour to type out an example is a waste of my time 

You are the troller. I looked stupid in front of everybody. Trying to teach people what health is in front of a doctor   
note : I am not saying what you found out above is correct or wrong though 

Bro Aspartame,... may I know,... you purpose of wanting to know all these is for academic purposes or for what please ? Perhaps I can be of help here, if I'm able to....

Haha bro, ok. I have the following questions :

1. Difference between franked and unfranked dividend
2. Their treatment for resident and non-resident
3. How / in what instances a company declare franked and unfranked dividend
4. In practice, how often a company declare unfranked dividend

I think also easy to get from google as you are well versed in finance

For investment, just compare the net DY between the countries. See which one is higher loh....(before considering the risk)

If you pay less tax (like 15% or 30%) than Australian (34%) for ASX, but the DY is lower than from SGX shares, you also don’t want right ?

Yeah

I am unhappily paying 30% with holding tax on US stock dividends, but net yields of 8 to 12%.....so. 

Yeah.....high returns is high-er risk.

Do a search at seekingalpha. Then make your own DD.

Funds do not know everything. Plus they have their own risk constraints. All I know is I receive monthly or quarterly dividends from these counters.  AND their earnings more than cover these dividends. Sometimes they issues special dividends, so the yields are even higher.

We need contributors in forum ! Looking forward to your research 

Bro,... the above would be a good start as an objective,... I look at it this way,.. are you able to invest INSIDE Australia ? IF you are able to, then only you start talking about franking of divvy payouts,... otherwise, why bother ? Just compare what that is given out without the frankings and see if it is worth it against your existing investments,..

One more tip : when Aussie companies declare dividends, they always say whether it's a fully-franked dividend or dividend with frankings,... they will say fully-franked, 30% franked, etc,... it's very clear,...

well said bro. Agree ! Like prophetjul also said, USA tax is 30%, but he is happy with 8-12% net return. So why bother to compare how much tax the local vs foreigner pay...

That's why I thought bro aspartme is just trolling me. He is of financial background, already knew very well how the dividend system works. He is just trying to test me...

IIRC, we had a "discussion" on property prices last year, back and forth with something very simple which, for some unknown reason, he disagreed with me. Eventually cherroy transfer the thread to /k (don't know why moderators hates BBB DDD threads). He didn't resply me since...

A lazy person will never be a good investor. In fact a lazy person will never be good in anything

Don’t be lazy. Lazy is a wrong attitude which bring you failure in anything you do.

Finish off your research. Not that difficult lah....

Awaiting your contribution.

Actually, if you look at how I reply you, I was guiding you towards the right mindset in investing.

You compare the tax payable between local vs foreigner, instead of the total net returns from investing in different countries.

Eg your investment decision is based on if Australian pay dividend tax 30%, you pay 30%, then can invest because it is “fair”

What if the DY in ASX is 5% nett, while SGX is 8% nett ? This should be the criteria of your investment decision instead of how much tax you pay above/below the locals

This is similar with what we “discuss” last time IIRC. You insist you were right, that is your choice. I am not pointing a gun at you to accept the concept 

If you always “half-cook” your knowledge, and giving excuses that it is “inconsequential”, you will never make a good investment decision.

Specifics and being detailed is very important in passive investment. Even a tiny bit of difference, like 2% DY, could have caused you thousands of dollars

Another of the mindset in investment decision. Never underestimate the difference in specific vs general

Again, not pointing a gun at you to accept the mindset. If you are contented with being “cincai”, continue with it 

Why not just finish up your own analysis and opinions, instead of explaining yourself what you did last time ?

What is the net dividend after tax a foreigner pay for ASX ?

Question is so simple right ? 

This thread is getting derailed.

Btw, how r dividends in australia taxed for non residents like Malaysians?

Full tax or no tax, anyone know?

Things have been very volatile with ASX dividend stocks. And now,.... their franking credits arguments are taking place between the ruling party and the opposition Labor Party.

For myself,... I noticed safety in only 2 ctrs for the time being, namely ARF and CQE, both being early-learning ctr REITs. Both pay four times a year.