# DRP vs. BSP



## triggerg (8 February 2011)

Hey guys - this is my first post although i have been reading these forums for a while.

Recently i got a letter regarding a dividend reinvestment plan (DRP) and bonus share plan (BSP) with the company CWP for which i own stocks.  After reading it, it is my understanding that DRP and BSP are primarily the same thing although you would recieve more shares using the BSP due to its tax exemption.

My question is, what are the advantages of DRP over BSP? and which one would be better to take is your current income was in the lowest tax category?

thanks
Trigger


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## KurwaJegoMac (8 February 2011)

*Re: DRP vs BSP*



triggerg said:


> Hey guys - this is my first post although i have been reading these forums for a while.
> 
> Recently i got a letter regarding a dividend reinvestment plan (DRP) and bonus share plan (BSP) with the company CWP for which i own stocks.  After reading it, it is my understanding that DRP and BSP are primarily the same thing although you would recieve more shares using the BSP due to its tax exemption.
> 
> ...





Hi Trigger,


Here's a good explanation as to the difference in each and the potential tax differences. Best would be to ask a licensed financial adviser as we can't give tax related advice on this site (unless you're lucky to have an accountant post). 

Hope it helps!


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## KurwaJegoMac (8 February 2011)

*Re: DRP vs BSP*



KurwaJegoMac said:


> Hi Trigger,
> 
> 
> Here's a good explanation as to the difference in each and the potential tax differences. Best would be to ask a licensed financial adviser as we can't give tax related advice on this site (unless you're lucky to have an accountant post).
> ...




Oh my, how embarassing - i didnt post the link to the site i was talking about :S so sorry! ill see if i can find it tom. Either way using a bsp will trigger a taxable event at a different time than a drp. You'll need to speak to your accountant on the best time to do that.


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