Curious - how are they tax free dividends?
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I've not owned WBC before and notice that even though I bought these on the NZX, the dividend is paid in Australian dollars. I'm assuming that no NZ tax is deducted so I'd be grateful if somebody who is holding these could advise what I need to do to satisfy NZ tax obligations. Thanks.
You assume incorrectly. Westpac dividends have had associated NZ imputation credits (to a limited degree) for several years now. You can claim these imputation credits as tax paid in New Zealand on your New Zealand income. However these imputation credits are not paid to 28% and are insufficient to extinguish your NZ tax obligations on the whole Westpac dividend.
As an NZ taxpayer you are not allowed to claim Australian Franking Credits. So when you get your dividend statement and it shows your Net Income in Australia (with franking credits deducted) then this becomes your Gross Income in New Zealand. Enter this gross income you get from Australia alongside any associated Aussie withholding tax paid if any (which perversely you are allowed to claim as tax paid for NZ purposes) in your 'overseas income' section of your NZ tax return.Quote:
so I'd be grateful if somebody who is holding these could advise what I need to do to satisfy NZ tax obligations. Thanks.
SNOOPY
discl: WBC shareholder on the NZ Register.
I nearly spat out my lunch - WBC up 220c this morning and a divvy to come end of June - lovely
bit of a smack down for Craigs this rise today , they just hated on Aussie Banks ,
3 years of opinion polls got it wrong ,
Big four all up to 6% plus today. Election result and franking credits staying may be the reason