Part 1 - Taxation of foreign dividends

This part explains how dividends paid by a foreign company are taxed in Australia. This can occur in two ways:

• when a resident taxpayer is taxed on a dividend received from a non-resident company, or
• when an attributable taxpayer in relation to a controlled foreign company (CFC) or a controlled foreign trust (CFT) is liable to tax on the taxpayer's share of a dividend paid by an unlisted country CFC directly or indirectly to another CFC or a CFT.

Summary of part 1

Section 1	How do you treat a dividend received from a non-resident company?
Section 2	What if a CFC or CFT receives a dividend from another CFC?
Section 3	When is a CFC deemed to pay a dividend?