For those who get dividends from investment in dividend shares

[Unrepented]

All dividends are tax exempt when distributed to and in the hands of shareholders, meaning investors don't kenna tax on the dividends received if we invest in shares.

Last time, we kenna taxed for such dividends.

Comparing the two, is the current tax exemption of such dividends good for heartlander uncles and aunty investors

Opinion please, lets discuss to gain more knowledge and englightment......for me at least :o

 

[ArjanParangToh]

I think it's fair for not taxing of dividend. Side thread abit, if I win, profit also Kenna tax, what about when I lose? Govt got contribute certain percentage of my losses?

 

[ginfreely]

All dividends are tax exempt when distributed to and in the hands of shareholders, meaning investors don't kenna tax on the dividends received if we invest in shares.

Last time, we kenna taxed for such dividends.

Comparing the two, is the current tax exemption of such dividends good for heartlander uncles and aunty investors

Opinion please, lets discuss to gain more knowledge and englightment......for me at least :o

It is not good for heartlander uncles and auntie investors becos no more tax credit for the dividends after the tax exemption. The tax credit is more than the tax paid for most people except those in top income tax brackets. In other words, the tax excemption only benefits the elites lah..

 

[po2wq]

... Comparing the two, is the current tax exemption of such dividends good for heartlander uncles and aunty investors ...

got difference, meh? ...

last time, coy gif dividend 2 uncles n aunties b4 ah loon took his share ... so, ah loon took directly from uncles n aunties ...

now, coy gif ah loon his share b4 giving remaining dividend 2 uncles n aunties ... so, uncles n aunties dun haf 2 gif 2 ah loon ...

either way, ah loon get his share ...

net amt uncles n aunties get stil same wat! ...

 

[halsey02]

All dividends are tax exempt when distributed to and in the hands of shareholders, meaning investors don't kenna tax on the dividends received if we invest in shares.

Last time, we kenna taxed for such dividends.

Comparing the two, is the current tax exemption of such dividends good for heartlander uncles and aunty investors

Opinion please, lets discuss to gain more knowledge and englightment......for me at least :o

Unless the shares you hold are listed in units of 1,000, your dividend yield 0f 4% would be $40, ten lots, you have a dividend of $400. But most shares are listed in 0.10cts? 1 lot you hold of 4% dividend, what will you get?. You think the heartland auties & uncles are that stupid, even dividend yield are tax free. In the past on holding shares, even when the share dip below par, the dividend yield may cushion the paper loss. But nowadays to make money from dividends, you got to be kidding!!

 

[Unrepented]

@ ginfreely, pls read po2wq analysis.............got difference meh

@ p02wq, every tum read your coding gives me headache :(:*:

It is not good for heartlander uncles and auntie investors becos no more tax credit for the dividends after the tax exemption. The tax credit is more than the tax paid for most people except those in top income tax brackets. In other words, the tax excemption only benefits the elites lah..

got difference, meh? ...

last time, coy gif dividend 2 uncles n aunties b4 ah loon took his share ... so, ah loon took directly from uncles n aunties ...

now, coy gif ah loon his share b4 giving remaining dividend 2 uncles n aunties ... so, uncles n aunties dun haf 2 gif 2 ah loon ...

either way, ah loon get his share ...

net amt uncles n aunties get stil same wat! ...

 

[Unrepented]

Now I am really confused.:o One bro up there, say not so good, you say tax free, tax free is good, sibo

.............. You think the heartland auties & uncles are that stupid, even dividend yield are tax free........

 

[ginfreely]

@ ginfreely, pls read po2wq analysis.............got difference meh

@ p02wq, every tum read your coding gives me headache :(:*:

P02wq analysis sound logical too but I know got difference, last time I can get tax credit more than a thousand but now no more and my income tax bill went up as a result!

 

[QXD]

Unfortunately it is more true that a lot of uncle and aunties would speculate penny stocks or end up as the patsies of syndicates rather than buy blue-chips when the market is down and hold on to get good dividends.

Admittedly, in my younger days when I just started working, I made this very mistake and paid for it dearly with a mid 5 digit credit card debt...

 

[Unrepented]

Not so much about investment strategy, like pay premium for cum dividend stock, or wait to pay lesser for ex dividend stocks. But do lower income earners pay more tax before or after the introduction of the one tier dividends :o

"Singapore currently adopts a one-tier corporate tax system. Under the one-tier corporate tax system, tax paid by a company on its chargeable income is the final tax. All dividends paid by a company are exempt from tax in the hands of the shareholders"

Unfortunately it is more true that a lot of uncle and aunties would speculate penny stocks or end up as the patsies of syndicates rather than buy blue-chips when the market is down and hold on to get good dividends.

Admittedly, in my younger days when I just started working, I made this very mistake and paid for it dearly with a mid 5 digit credit card debt...

 

[johnny333]

I use to have Malaysian Shares which was kept by my Sporean broker in Spore. For years the broker collected a monthly fee for holding the shares & when I received a dividen the gov't collected gst on it.

I've now transfered those shares to a Malaysian broker. No more monthly fees & no more GST. Should have done it sooner, it would have saved me $$$

 

[Unrepented]

I check check and get what you mean liao. Please correct me if I am wrong:o

In the past before the one tier dividend:-

For low income group:
Corporate tax is 17%
If personal tax is 7% on dividend
Individual gets 17% as tax credit for the corporate tax suffered
So still get positive 10% credit net

For high income group:
Corporate tax 17%
If individual tax 20% (max)
Individual get 17% tax credit
But still got to pay addtional 3% tax on dividends received

With one tier tax exempt:

Low income group:
Corporate tax 17%
Individual tax 7%
Therefore increase in tax paid by individual is 10% for the dividend

High income group:
Corporate tax 17%
Individual tax 20%
Therefore a saving of 3%

It is not good for heartlander uncles and auntie investors becos no more tax credit for the dividends after the tax exemption. The tax credit is more than the tax paid for most people except those in top income tax brackets. In other words, the tax excemption only benefits the elites lah..

P02wq analysis sound logical too but I know got difference, last time I can get tax credit more than a thousand but now no more and my income tax bill went up as a result!

 

[Unrepented]

Good for you bro. Still bugs me why medical got gst.:o

I use to have Malaysian Shares which was kept by my Sporean broker in Spore. For years the broker collected a monthly fee for holding the shares & when I received a dividen the gov't collected gst on it.

I've now transfered those shares to a Malaysian broker. No more monthly fees & no more GST. Should have done it sooner, it would have saved me $$$

 

[Thick Face Black Heart]

Unfortunately it is more true that a lot of uncle and aunties would speculate penny stocks or end up as the patsies of syndicates rather than buy blue-chips when the market is down and hold on to get good dividends.

Admittedly, in my younger days when I just started working, I made this very mistake and paid for it dearly with a mid 5 digit credit card debt...

Not to worry. I made the same mistakes as you in my youth. Multiple times too. Fortunately managed to clear my 5 figure debt (the front digit is more than 5) by hard work. Now my trading has improved. I also focus on long term investment in various asset classes and pay a lot of attention to credit & counterparty risk.

Lehman minibonds, margin calls, etc happen to those who fail to control or understand risk.

 

[Unrepented]

Can you share some insight on this

.......... understand risk.

 

[Fook Seng]

Many Govt policies are meant to incentivise the high income. This is one of them. But then if you believe that all investors should be treated equally and this is not earned income, then this is fair. The old fully imputed system of tax was a legacy carried over from British days. Except for a handful of commonwealth countries, most countries are not practising it anymore.

 

[Thick Face Black Heart]

All dividends are tax exempt when distributed to and in the hands of shareholders, meaning investors don't kenna tax on the dividends received if we invest in shares.

Last time, we kenna taxed for such dividends.
:o

I still get double taxation of dividends on US stocks.

 

[Unrepented]

Dividends declared in US and received in sgp in your individual name?

I still get double taxation of dividends on US stocks.

 

[Unrepented]

Seems the imputation is still more equitable and a progressive tax in this respect. With current one tier, holders of restricted stocks will kena hit if their indiv mtr is below 17% :(

Many Govt policies are meant to incentivise the high income. This is one of them. But then if you believe that all investors should be treated equally and this is not earned income, then this is fair. The old fully imputed system of tax was a legacy carried over from British days. Except for a handful of commonwealth countries, most countries are not practising it anymore.

 

[Thick Face Black Heart]

Dividends declared in US and received in sgp in your individual name?

Individual. Not corporate, if that's what you're asking. I get the full 30% smack in the face, if I remember correctly.