Hi all!, if you're a shareholder in an Australian corporation and the corporation earns $1.50 per share before taxes. Once it has paid taxes it distributes the rest of its earnings to you as a dividend. The corporate tax rate is 30% and you are on the lowest personal tax rate of 23%. How much would be left for you after all taxes are paid/refunded?
Thanks for any answers as I'm having trouble wrapping my head around the concept!
I'm guessing $1.50 with 45c franks thus op get in his bank account 1.05. on personal level you report $1.50 divided with 45c tax credit. Op gets txed 34.5c, keeping 10.5c
Would I only keep 10.5 cents? I thought I had received $1.05? if i was taxxed 34.5 cents wouldnt i keep.705 cents?
Sorry, you keep $1.05+10.5c
Answer depends on the tax rate paid by the company on their earnings - this could be 30% or zero.
Once it has paid taxes it distributes the rest of its earnings to you as a dividend. The corporate tax rate is 30% and you are on the lowest personal tax rate of 23%.
Tax on taxes?
Stonks hodlers collecting divs are getting rekt.
Tax on taxes?
No, would be refunds of pre paid taxes.
Earnings or dividends on stocks are no different than earnings on staking rewards in crypto.
Capital gains or losses on stock sale events are no different than earnings or losses on crypto sale events.
You pay tax on earnings, at your nominal tax rate.
You pay CGT on gains.
Or you just keep talking up crypto and ignore the fact it falls under the same tax rules as every other investment asset class.
If you insist on talking about crypto.
There are no taxes on LP and liquid staking. People can also avoid CGT by hodl and borrowing instead of selling.
Stonks isn't my wheelhouse but crypto is. Please read up on crypto before saying that they play by the same rules.
There are no taxes on LP and liquid staking.
You're claiming earnings from liquidity/staking is completely tax free?
You are incorrect.
https://www.ato.gov.au/general/gen/tax-treatment-of-crypto-c…
Any income earned from Staking or Airdrops will not constitute a Capital Gains event. Rather, additional tokens received from these processes are considered by the ATO to be income. They are taxed according to your income bracket.
Please read up on crypto before saying that they play by the same rules.
The ATO would disagree with you
Why is when anyone points out incorrect statements about how 'amazing' and 'tax free' or 'completely different to other asset types' crypto is, its automatically assumed the poster has no idea about crypto. I havent made (or lost) the millions that many crypto bro's have, but that doesnt make me naive the market
You're claiming earnings from liquidity/staking is completely tax free?
You are incorrect.
I didn't say that. What I said was There are no taxes on LP and liquid staking.
I understand if you don't know the difference between staking and LP/liquid staking. People that don't know the difference assume that all staking is the same. It's not the same.
I'll stop talking about crypto in this thread now.
Enjoy the rest of the day, evening and night.
There are no taxes on LP and liquid staking.
I'm unsure on what technicality you're making here?
You make earnings from providing your token to the liquidity pool right? You aren't providing them for the feelz.
Those earnings are taxed, as they are deemed as income, calculated at their current market value when they hit your wallet.
If you make no earnings from providing liquidity then no idea what argument you're making as you have made no additional earnings (aka income according to ato)
Hi newbie, ask your accountant.
If you have a lot of shares which yield you a substantial amount of dividends I suggest it is best for your to get an accountant or a registered tax agent to help you out. They are worth for your money and the fees paid to them are tax deductible too. Disclaimer: I am simply a retiree.
The $1.50 is confusing as is your random 23% individual resident tax rate. Why not use the proper rates?
Resident tax rates 2021–22
Taxable income Tax on this income
0 – $18,200 Nil
$18,201 – $45,000 19 cents for each $1 over $18,200
$45,001 – $120,000 $5,092 plus 32.5 cents for each $1 over $45,000
$120,001 – $180,000 $29,467 plus 37 cents for each $1 over $120,000
$180,001 and over $51,667 plus 45 cents for each $1 over $180,000
Company has taxable income of $1m and pays 30% tax. (the only important part of this is that the have franking credits to burn).
Company decides to pay a $1 per share fully franked dividend. So the dividend is $1 with a 30c imputation credit.
Lets assume you have 1000 shares and get $1000 plus a $300 imputation credit.
If your taxable income from wages is $40K then add in the grossed up dividend of $1000 + $300 = $1300. Total taxable income = $41300.
You then get a $300 tax credit.
This explains it well
https://www.hrblock.com.au/tax-academy/tax-on-dividends-inve…
Need to know how much franking credit is attached to the dividend.