sharetrader
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  1. #1
    Junior Member
    Join Date
    Jun 2001
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    Auckland, , New Zealand.
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    27

    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
    Join Date
    Oct 2016
    Posts
    201

    Default

    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
    Member
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    Sep 2007
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    352

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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
    Advanced Member
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    Feb 2005
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    Auckland, , New Zealand.
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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
    Advanced Member
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    Feb 2005
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    Auckland, , New Zealand.
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    Default

    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
    Member
    Join Date
    Jun 2011
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    75

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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
    Join Date
    Mar 2005
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    2,976

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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......

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