Ic this is a very defensive counter. No comment on this as this counter is a long term play. Only you yourself can make decision on whether to sell or not


But you got to take care of the 26% tax which cannot be claim back anymore... For example if your stock DY is 10% but in actual fact it is only 7.4 %...

I see. so if by reading this page:

Entitlements (Notice of Book Closure)

GUINNESS ANCHOR BERHAD
Stock Name
GUINESS
Date Announced
03/11/2008


EX-date
27/11/2008
Entitlement date
01/12/2008
Entitlement time
05:00:00 PM
Entitlement subject
Final Dividend
Entitlement description
Final dividend of 14 sen per 50 sen stock unit tax exempt and 17 sen gross per 50 sen stock unit less Malaysian income tax at 25%.
Period of interest payment to
Financial Year End
30/06/2008
Share transfer book & register of members will be
to closed from (both dates inclusive) for the purpose of determining the entitlements

Payment date
22/12/2008
a.
Securities transferred into the Depositor's Securities Account before 4:00 pm in respect of transfers
01/12/2008
b.
Securities deposited into the Depositor's Securities Account before 12:30 pm in respect of securities exempted from mandatory deposit
27/11/2008
c.
Securities bought on the Exchange on a cum entitlement basis according to the Rules of the Exchange.

Number of new shares/securities issued (units) (If applicable)
Entitlement indicator
RM
Entitlement in RM (RM)
0.31

Remarks :
Payment of the proposed Final Dividend is subject to the Stockholders' approval to be obtained at the forthcoming 44th Annual General Meeting of the Company scheduled for 26 November 2008.
© 2008, Bursa Malaysia Berhad. All Rights Reserved.


does it mean i will get 0.31 cent or less??

This post has been edited by espree: Nov 6 2008, 11:39 PM

Less 25% tax deducted at source (17 sen * 0.75 + 14 sen). Can claim back when you submit your tax return (providing your tax bracket lower than 25%, which most of us did).

miss out some words.

This post has been edited by htt: Nov 7 2008, 08:20 AM

Final dividend of 14 sen per 50 sen stock unit tax exempt and 17 sen gross per 50 sen stock unit less Malaysian income tax at 25%.

So that means 14 sen is tax exempted that means RM 140 NETT YOU GET

Whereas for the 17sen it will be taxed 25% thats means you will get RM127.50

So you will get RM 267.50 nett...
For the tax part you cannot claim back as stated on our new budget by our Ex finance minister

Really cannot claim back? That's not standard practices for other parts of the world leh. Maybe I too long away from our bolehland liao

But the budget 2008 said:
Companies with credit balance of section 108 account which do not elect to switch over to the single tier system are allowed to use the credit balance for purpose of dividend distribution during the transitional period of 6 years until 31 December 2013. The mechanism and conditions to utilise the credit are as follows:
i. the credit balance of section 108 account allowed for the purposes of dividend distribution to the shareholders is the balance as at 31 December 2007;
ii. the credit balance of section 108 account will be adjusted only for tax reductions;
iii. company that has fully utilised the credit balance of section 108 account at any time during the transitional period will automatically move to the single tier tax system;
iv. all companies will automatically move to the single tier tax system on 1 January 2014 even though they still have credit balance of section 108 account as at 31 December 2013;
v. maintaining the current provision of disallowing companies which take over other companies to acquire the credit balance of section 108 account;
vi. companies are only be allowed to pay cash dividend; and
vii. for small and medium companies, tax on dividend paid to shareholders is deducted from the credit balance of section 108 account based on the highest current tax rate.
Conditions for shareholders to claim tax crediti.
i. Only direct expenses related to dividend income are allowed to be deducted in arriving at adjusted dividend income;
ii. The claim for tax credit is only allowed for shares held continuosly for 90 days or more from the date of purchase of shares (excluding public listed companies);
iii. Only dividend distributed from ordinary shares are eligible for tax credit; and
iv. Dividend income of shareholders of a company which is not from business source is not allowed to be aggregated with other income in the computation of chargeable income. This condition is not applicable to entities other than a company.

This post has been edited by htt: Nov 7 2008, 08:54 AM

Thank you very much. I learned a lot.

In the future, it cannot be claimed back under single tier system.
Now, we are in transition period of changing the tax system. So there might be some confusion around.
So if those company doesn't use the previous tax credit to offset the tax then all tax credit will be voided after 2012.

So whenever you see the dividend is declared under single tier, then no claim back.

They will put a word single tier under the back of dividend, just like BAT does.

Oic, I thought our bolehland can innovate and create a tax system total opposite the rest
The future until 2013, that's very long time for me
But those with Section 111 tax credits still can continue paying out imputation dividend, and their shareholder can continue to claim back 'tax difference from their highest tax bracket', until tax credits exhausted or 2013, which ever come earlier

My understanding of single tier tax system is eg.
Since BAT declared a RM0.76 dividend entitlement, shareholders get the full RM0.76 because its already been taxed at company level. and also since its taxed at company level, we as shareholders cannot claim back??

Then Two tier tax system like guiness... that should mean that we as shareholders can claim back right??

sorry.. really confused

Yes.

Previous under imputation system. BAT declared as Rm1.00 dividend less tax. But people can claim back.
But now with new single tier system, it become Rm0.76 single tier not claim back.

Both company is actually paying the same amount of dividend.

meainng no need report in your income tax?

For one-tier dividend, no need.

Got one question here, since all th dividend counter like BAT, NESTLE JTINTER will be badly affected as the dividend yield is erroded 25% . I WONDER why these counter share price still so solid. Pls advice

and also how do we know if the dividend is single tier?
sorry to mess up this REIT thread with the non-related question

For rich earner, it makes no difference, still an attraction for them! because personal highest income tax bracket > corporate rate tax.

Steady dividend stocks are even more attractive nowadays because of interest rate cut around the world. Deposit rate is sliding across the globe, even for US only 1%, so those with 7-8% steady dividend yield and dividend/profit won't be affected too much in the financial crisis become more attractive than previously.

Dividend yield attraction is always a comparative with deposit rate. If FD rate is 7%, then it makes no sense to invest into stock that carry 7% dividend, as why opt for risky investment while getting the same yield?

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Added on November 8, 2008, 8:53 amThey generally will state at the back when declared the dividend, just like BAT declared "76 cents dividend single tier".

This post has been edited by cherroy: Nov 8 2008, 08:55 AM

YUP, FOR rich earner there should be no impact at all. How about for medium class ? their salary is low. So, for the medium class who holding dividend stock might not benefit them so much compare to last time.

money is still money . dividend you still get, where's the harm in that?

If imputation dividend amount to RM1,000 distributed to a rich (highest tax bracket at 28%) and a middle (highest tax bracket at 10%) shareholders.
When they submitted their tax return at the year end.
Rich shareholder no need to pay tax for the dividend, and cannot get refund (or reduction) of tax paid at source because his tax bracket is 28% which appear to be higher than 26%.
Middle shareholder can claim back 16% of RM1,000 (RM160) as tax deducted at source because the tax need to be paid for him is 10% but 26% had been taxed by government. He can use the RM160 to offset his tax or get cash back if his difference between tax deducted at source and his highest tax bracket is more than what he supposed to pay.

Under One-tier tax system, they both cannot claim back. This is no harm to rich shareholder but there might be some for the middle.
Under one-tier system, company pay the final tax and dividend is 'not tax deductible' in the hand of shareholders (I think that's just to beautify the system).

Hope I make the thing clear.

Yup thats y i said the rich earner don have any impact but pity for the middle income group lor

haha, stock exchange had always a rich man game.
so if for those who work as casher in public bank only earn few thousand, need to pay electricity bill, transport,petrol, food where still have money for investment?
so consider all those have excess money to invest as rich category is right?
dont quote me if i am wrong

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Added on November 9, 2008, 8:49 pmaccording to chinese newspaper last years statistic only 200,000 thousand malaysian actually pay income tax at lowest bracket and only 40,000 malaysian include uncle lim and teh la actually paid maximum tax at 28%

so that mean we have near 22 million population, not paying taxes, so is that true?



This post has been edited by normanTE: Nov 9 2008, 08:49 PM