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Member
Supplementary dividends for non-residents
This week I got paid a dividend for a small amount of shares that I have but did not receive the supplementary dividend. I am a citizen but non-resident, so shouldn't I get one? Maybe it comes later or I am just misunderstanding their purpose.
Can anyone give me a layman's explanation of supplementary dividends?
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Supplementary Dividend = More Tax
Originally Posted by shonen knife
This week I got paid a dividend for a small amount of shares that I have but did not receive the supplementary dividend. I am a citizen but non-resident, so shouldn't I get one? Maybe it comes later or I am just misunderstanding their purpose.
Can anyone give me a layman's explanation of supplementary dividends?
As a New Zealand tax resident your total gross dividend is made up of the Amount + Imputation from which tax is deducted usually at 30%.
As a [New Zealand] non-tax resident your total gross dividend is made up of the Amount + Supplement from which tax is deducted usually at 15%.
So as a for instance the Paper Tiger Company pays you a gross dividend of $117.65 comprising of:
$100 basic amount
$17.65 supplement.
15% of $117.65 is $17.65 which goes to the tax man and you get the $100.
So the supplementary dividend is extra money that the company pays to the tax man for it's foreign shareholders.
See you are in Singapore - I used to live out near Boon Lay (4 years ago now, time does fly) but currently living in Indonesia.
Best Wishes
Paper Tiger
Last edited by Snow Leopard; 23-03-2014 at 08:42 PM.
om mani peme hum
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Member
That makes sense, thanks.
lol considering how small SG is, it is strange that I have never been to Boon Lay (been in SG for 5+ years and currently stay out east), but have been to a few places in Indo like Surabaya.
Last edited by shonen knife; 23-03-2014 at 10:26 PM.
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