You have lost me here. How does a PIE fund make for a tax free dividend?
I'm getting my first dividend statement shortly, so hoping you are correct.
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https://barramundi.co.nz/investor-ce...nt-strategies/
From their website -
Barramundi has a clear advantage over many other listed entities through their Portfolio Investment Entity (PIE) tax status. As a listed PIE, Barramundi dividends will be tax-free to New Zealand resident shareholders. Refer to ‘What does PIE mean?’ under the FAQ section of the website for further information.
PIE Regime
Barramundi is a registered Portfolio Investment Entity (PIE) for tax purposes. The PIE regime has significant advantages for shareholders:
· New Zealand tax resident investors:
Natural person Shareholders or Trustees do not have to include dividend income from Barramundi in their tax return (although they can elect to include such dividends, which may be a benefit if the taxpayer is on a marginal tax rate that is lower than 28% and wants to claim imputation credits attached at the higher rate of 28%).
Other shareholders only have to include fully imputed dividends as assessable income, in which case the imputation credits should usually fully offset any tax liability. To the extent that the dividend is not fully imputed, the dividend should be treated as excluded income (i.e. not taxable).
No Resident Withholding Tax is withheld on distributions to New Zealand resident investors.
· Non-resident investors:
To the extent that a non-resident investor receives a dividend that is not fully imputed, the dividend should not have Non Resident Withholding Tax (NRWT) deducted in New Zealand.
NRWT may be withheld on fully imputed dividends (unless an applicable double tax treaty provides otherwise). Where this is the case, the investor will receive an additional supplementary dividend. This should compensate the investor for the amount of NRWT withheld on the dividend.
The above refers to New Zealand tax only, the tax position of each investor will need to also be considered in their relevant jurisdiction.
· Imputation credits will be attached to dividends to the fullest extent possible.
· There is no tax on the distribution of capital gains to shareholders.
"Emphasis added"
Plenty more information at www.barramundi.co.nz
Enjoy your dividend :)
Barramundi is also liable for tax under the FIF regime (Foreign Investor Fund regime) but as I understand it a large part of their portfolio is exempt under the exclusions for Australian companies incorporated within the rules. N.Z. shareholders do not have to worry about the partial application of FIF rules with this company, all that is taken care of by the company.
LOL I prefer to think about the tax situation before investing. Beagle's don't like sharing their dividend food with anyone, especially the Government :)
http://nzx-prod-s7fsd7f98s.s3-websit...504/309524.pdf
Annual meeting presentation from Friday. I attended and was satisfied with the presentation. Fund performance more or less matched the index last year. FY20 has started well for the company with the first quarter's return at about 7.6% from memory well over double the market return for the quarter ended 30 September of about 3.3%.
Chief investment officer is confident they are, (to quote an overused phrase), well positioned for the year ahead. They put on a nice lunch afterwards.
Couta is proud of me because I "did a Couta" with these when I exercised my warrants today.:t_up:
A lot has changed since that post of nearly 18 months ago and yes the new investment team is performing very satisfactorily, see here https://www.barramundi.co.nz/assets/...ember-2019.pdf
At the time of the post you referenced, May 2018, their chief investment officer was Frank Jasper, see here https://www.barramundi.co.nz/assets/...March-2018.pdf He was a very poor performer.
I am sure you will have noticed my subsequent comments about the effective gross yield.