Summary sheet - Working out the amount of foreign dividend income to include in your assessable income

Part A - Non-portfolio dividends received by a resident company from a foreign company

These dividends are always exempt from tax. Do not include them in your assessable income.

Part B - Foreign dividends received by a resident - other than non-portfolio dividends received by a resident company

These dividends are taxable unless the resident had an attribution surplus for the paying company at the time the dividend was paid.

 Step 1 Gross amount of each dividend GD \$ Step 2 Take away the amount of any attribution surplus (attS) up to the amount of the gross dividend. attS \$ Balance of the dividend. BalD \$ Repeat steps 1 and 2 for each dividend. Include this amount in assessable income. Step 3 Gross amount of all dividends - other than non-portfolio dividends - where there were no attribution surpluses for the paying companies. GD \$ Include this amount in assessable income.

Part C - Working out the amount to include in assessable income when a listed country CFC or CFT receives, directly or through other entities, a non-portfolio dividend paid by an unlisted country CFC

This part applies if you have an interest in a dividend paid by an unlisted country CFC to a listed country CFC and the dividend is not taxed at the listed country's normal company tax rate. Part D can also apply to an interest in a dividend paid by an unlisted country CFC to another unlisted country CFC if the dividend was paid as part of a dividend strip arrangement.

 Step 1 Work out your attribution percentage in the CFC or CFT that receives the dividend from an unlisted country CFC. att% \$ Step 2 Gross amount of the dividend received by the CFC or CFT. D \$ Step 3 Exempting profits percentage of the dividend - this applies only if the dividend was received by a CFC in a non-portfolio group of companies. EPP \$ Step 4 Take away the amount at EPP from the amount at D to get the balance of the dividend. BalD \$ Step 5 Multiply the amount of the attribution percentage by the balance of the dividend (att% x BalD). net BalD \$ Step 6 Take away from the net balance of the dividend, the amount of the attribution debit - if any - that arose for the CFC in relation to the resident company when the dividend was paid (net BalD - attS). Bal Amt \$ Step 7 Work out the amount of the dividend withholding tax (DWT / dividend X Bal Amt) DWT Amt \$ Step 8 Take away the amount at step 7 from the amount at step 6 Div \$ Step 9 Add the amount at step 8 to any foreign tax credit claimed in assessable income Div + FTC \$