Show download pdf controls
  • Section 3

    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

    $               

      Last modified: 12 Sep 2016QC 18120