• Definition of non-portfolio dividends

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    The concept of a non-portfolio dividend is central to the scheme of taxation of foreign dividends. A dividend is a non-portfolio dividend if five conditions are met. These are:

    • the dividend is paid to a company
    • the company receiving the dividend has a 10% or greater voting interest in the voting power of the company that paid the dividend

      The voting power in a company is the maximum number of votes that can be cast on a poll at a general meeting of the company at which all matters that can be referred to such a meeting are decided.
    • the shareholder is the beneficial owner of the shares that carry the required voting interest
    • the voting interest is held at the time the dividend is paid
    • there is no arrangement in force at that time by which any person is in a position - or may become in a position - to affect the voting right.
    Last modified: 05 Dec 2006QC 17522