Dividends and franking

[samdaman]

Hey guys!

here again trying not to clog the forum up with too many questions but I'm having a bit of a mare with the idea of franking and imputation credits. This is all in the venture to find how much I will actually recieve before tax and so on.

So real world example. http://www.asx.com.au/asx/research/c...=CDA#dividends

CDA.AX 2 dividend payments throughout the year. 100% franked, (in further notes there is the same amount at 30% is this further dividends or is this something else I am unaware of.)

so 2 questions.

- How much will I receive in this scenario?
- How do I calculate received dividend amount for fully and partially franked dividends?

Cheers for the help guys, much appreciated.
Sam

[winner69]

Hey guys!

here again trying not to clog the forum up with too many questions but I'm having a bit of a mare with the idea of franking and imputation credits. This is all in the venture to find how much I will actually recieve before tax and so on.

So real world example. http://www.asx.com.au/asx/research/c...=CDA#dividends

CDA.AX 2 dividend payments throughout the year. 100% franked, (in further notes there is the same amount at 30% is this further dividends or is this something else I am unaware of.)

so 2 questions.

- How much will I receive in this scenario?
- How do I calculate received dividend amount for fully and partially franked dividends?

Cheers for the help guys, much appreciated.
Sam

Are you a NZ Resident taxpayer

[samdaman]

yup born and raised a kiwi

[belted galloway]

Are you a New Zealand resident? If so, you have no entitlement to any imputation credits gained from Australian holdings.

[winner69]

The 100% means the whole dividend has franking credits applied to it. The @30% is the the tax rate used.

But as belted says you can't take advantage of the franking credits as a nz resident taxpayer.

For the example you posted you will get 7 cents and 1.5 cents(aud) which are deemed as overseas income and need to be declared as such ....so you end up paying tax in nz (with no offset like the Aussies get)

[samdaman]

lets say they pay 1 dividend per year of 10c fully franked. I would receive 4.29c in franking credits. How are these translated into money? I don't quite understand their benefit to me.

[winner69]

lets say they pay 1 dividend per year of 10c fully franked. I would receive 4.29c in franking credits. How are these translated into money? I don't quite understand their benefit to me.

The franking credits no value to you as a nz'er

[samdaman]

ok lets say the franking credits are from a NZ company?

[winner69]

ok lets say the franking credits are from a NZ company?

If they are Australian Franking Credits worth zilch

If they are NZ Imputation Credits you can use (calc on nz tax profits only)

Do you have a example of this

[samdaman]

WHS.NZ https://www.nzx.com/markets/NZSX/sec.../WHS/dividends

Do I just add the imputation credits to the amount I receive then tax it to calculate the amount I get in hand.