Conduit foreign income, page-2

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    Resident Individuals are taxed on the 'Conduit Foreign Income' portion of the dividends at their marginal tax rate. Conduit Foreign Income is essentially just an unfranked dividend.

    Unless a dividend statement specifically states that their was Foreign Tax withheld on the dividend (highly unlikely on a dividend from an Australian Company) then their will not have been any Foreign Tax paid paid/deemed to be paid by the shareholder to be entitled to a Foreign Income Tax Offset

    To clarify, it is the company (or it's subsidiary) that earned the foreign income and paid the foreign tax and therefore entitled to any Foreign Income Tax Offset (if any), the shareholder. 

    The double tax agreement is irrelevant in the case of a resident shareholder unless the dividend is also taxed in the other country.

    With that being said you should seek advice from your accountant for your specific circumstances as people tend to not fully understand their circumstances and tend to inaccurately describe the true nature of them.


 
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