Probably a stupid question but...... when you receive dividends or the proceeds from the sale of shares, is tax automatically deducted or do I have to pay that later, after I have submitted my tax return?
Probably a stupid question but...... when you receive dividends or the proceeds from the sale of shares, is tax automatically deducted or do I have to pay that later, after I have submitted my tax return?
Dividends and the proceed from the sale of shares are two completely different events for tax proposes, either way you have to include both in your tax return.
Dividends: Normally companies franked divds @ 30% that means that they already paid 30% in taxes. You will have to pay extra tax if your marginal tax rate is above 30%, if it is below you will get a refund. If they are not franked at all you have to pay.
Sales of shares: This is a Capital(losses) Gain Transaction and you have to pay taxes if you make a gain or offset the tax of other gains if you make a loss.
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.
