Dividend taxes ..

[rayonline]

Let's use my eg with MRP the smaller one.

800 units, payment rate 5.6c = dividend amount $44.80
Less RWT 3.11 = $41.69.

It says also:
NZ Imputation credit $17.42
Withholding tax $3.11
Gross Dividend $62.22

It says the current rate of resident withholding tax for NZ resident on dividends is 33%.

1. How is the imputation credit and the withholding tax calculated?

Edit. I think I got it. Imputation credit is dividend to the Gross Dividend = 28%.

Withholding tax is extra tax that makes up the difference to 33% for dividends.

So who uses a tax rate less than 33% in total? Non residents?


PS - rather than starting another thread, out of curiosity - is there anyway to purchase a NZX index?