Tax Filings for ASX Dividends

[silverblizzard888]

I'm a bit new to buying ASX shares for dividends though given some opportunities I'm considering it, but wondering if anyone here receives dividends from ASX listed companies and what the procedure for the tax filing is and when they should be done.

Some guidance around the matter would be great, so that I approach this matter in the proper manner.

My understanding is if theres imputation credits attached then you have been considered to have paid the tax, but if its franking credits then you need to pay the tax on it?

Cheers
SB888

[777]

If you are a NZ resident then you pay tax on worldwide income received in the relevant tax year. Australian dividends received need to be declared in NZ dollars in the overseas income part of the IR3. You are correct in the treatment of franking credits. Declare what net amount you bank/reinvest as the gross amount for inclusion in your tax return.

IRD site has a lot of information that you can read up on.

[Jay]

On the right track sb888 see here (http://www.ird.govt.nz/business-income-tax/imputation/trans-tasman-imputation/transtasmanimputation-nzshareholders.html)
777 beat me to it and is right (again :) )

Some will have Non Resident Withholding Tax (think that is what it is called) noted, which you can claim, but as you say not the Franking credits.
NZ govts have been for years trying to get some sort of tax agreement so we don't get taxed twice, however more benefit for NZers than Aussies so not a lot of traction/not in any hurry to change

Therefore in the main you are taxed twice.

[ratkin]

If you are a NZ resident then you pay tax on worldwide income received in the relevant tax year. Australian dividends received need to be declared in NZ dollars in the overseas income part of the IR3. You are correct in the treatment of franking credits. Declare what net amount you bank/reinvest as the gross amount for inclusion in your tax return.

IRD site has a lot of information that you can read up on.

Really, you can just put down the net amount? ie how much goes into your bank account after cheque deductions etc. Never knew that

[777]

Really, you can just put down the net amount? ie how much goes into your bank account after cheque deductions etc. Never knew that

That would be stretching it a bit.

What I meant was you declare the amount you received, not the grossed up amount due the franking credit.

[dragonz]

Just be careful buying ASX shares for dividends. Some companies only pay dividends into an Australian bank account

[G on]

Aus non resident with holding tax can be claimed.