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  1. #1
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    Default Asx stock, dividends and taxes

    My late brother left a lot of nab shares in my name. It pays 40,000 every 6 months into my account. Do I pay tax on this? And if so, is there a way around it....Eg. take shares in lieu of dividends then sell the stock dividends....Help appreciated.

  2. #2
    Investor
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    Oct 2016
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    Sorry to hear of your loss.

    Yes, you are required to pay tax on dividends received from investments in overseas companies. If you use a dividend reinvestment plan, you still have to pay tax as it is considered income.

  3. #3
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    so the dividends are taxed twice. Once in Australia and again in NZ where the net dividend has to be declared as income for NZ tax purposes. Also, we do not have access to franking credits.

  4. #4
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    Quote Originally Posted by voltage View Post
    so the dividends are taxed twice. Once in Australia and again in NZ where the net dividend has to be declared as income for NZ tax purposes. Also, we do not have access to franking credits.
    There is no tax deducted from Australian dividends generally, but if there is then that can be claimed on your NZ tax return. True franking credits cannot be claimed.

  5. #5
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    Quote Originally Posted by younga View Post
    My late brother left a lot of nab shares in my name. It pays 40,000 every 6 months into my account. Do I pay tax on this? And if so, is there a way around it....Eg. take shares in lieu of dividends then sell the stock dividends....Help appreciated.
    It will be wise to check the IRD site regarding Provisional Tax requirements.

  6. #6
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    Jun 2011
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    If this amount is included in the 17-18 tax year and any tax credits you have do not reduce tax payable to under $2000-$2500 then provisional tax will need to be worked out for the following year. No biggie. If you are receiving it in the 18-19 tax year you may still want to think about voluntary payments as it may be quite large to leave for a year.

  7. #7
    Guru Xerof's Avatar
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    Mar 2005
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    Whilst on the matter of Franking Credits, did I hear something a while ago that Labour would take a look at allowing FC's to be treated similarly to IC's? Or was I having a discussion with myself......

  8. #8
    Junior Member
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    Jun 2018
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    I'm looking to dip my toe into the odd penny stock or two on the ASX. Can someone please provide guidance on taxation when selling in future? Thanks in advance.

  9. #9
    Antiquated & irrational t.rexjr's Avatar
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    Quote Originally Posted by Gecko View Post
    I'm looking to dip my toe into the odd penny stock or two on the ASX. Can someone please provide guidance on taxation when selling in future? Thanks in advance.
    Open a Sharesight account and it's all be done automatically. Trading advisable as I'd not recommend a penny stock for investment. First in first out, so the first share you buy is the share you sell first, you can't to my knowledge pick what parcel you are selling.

    Penny stocks as a general are not about the destination but journey there. Buy when it's a dog and no-ones interested. Sell down on the news and you'll have a chance of gains. If you think they're actually going to become a mine or producer or anything the odds are not even worth a bet

    Listen to every word of this.

    https://www.youtube.com/watch?v=OoIPQEbuwaM

    Good luck!

  10. #10
    Junior Member
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    Jun 2018
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    Thanks t.rex! May the market forces be with me.

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