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 |
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Step 3 |
Gross amount of all dividends - other than non-portfolio dividends - where there were no attribution surpluses for the paying companies. |
GD |
$ |
|
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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 |
$ |
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 |
$ |
Step 7 |
Work out the amount of the dividend withholding tax |
DWT |
$ |
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 + |
$ |