For those who get dividends from investment in dividend shares

[Thick Face Black Heart]

Can you share some insight on this

If you can understand Enron, Lehman Brothers and MF Global, you understand what risk is. The first is management risk. The second is counterparty credit risk. The 3rd is mother fucker risk -- the risk that the people you do business with are mother fucking fraudsters who steal openly from your account and liquidate your positions without your approval.

 

[Unrepented]

As far as I know;

1. From calendar year 1st Jan 2004 onwards, all foreign income received by an individual (in the name of the individual) in sgp are all tax exempt.
2. Therefore, double taxation is not applicable.
3. If your dividend was received on or after the above date, the 30% smack should have arisen from US corporate tax and/or withholding tax from some states.

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

 

[johnny333]

I still get double taxation of dividends on US stocks.

Are you living in the US or in Spore

 

[Unrepented]

With double taxation issue, maybe us. But let TFBH ans.

Are you living in the US or in Spore

 

[Fook Seng]

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% :(

The fully imputation regime favoured the lower income. That is true.

 

[Unrepented]

When people hear the term "tax exempt dividends", they jump in elation, but neber try to understand the underlying transactions and implications. I just feel sad for them, that's why start this thread to help them and myself understand more. And adopt an inquisitive approach as a way of life :p

Abolishment of estate duties is another :p

The fully imputation regime favoured the lower income. That is true.

 

[Received_by_Kings]

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

You sure are stupid. No repentance coming from you either.

 

[Unrepented]

I know:o:p That's why got to ask and learn mah.:p

You sure are stupid. No repentance coming from you either.

 

[Confuseous]

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

I am not quite sure from your post on the exact information you are looking for. And the responses in the thread are responding to different issues perhaps.

If the intent of the question is whether one is better off by putting into stocks which have yields higher than the miserable -1% offered by the banks for fixed deposits, the answer is YES! A quick look at the yield rates by various blue chips will confirm this. BUT as someone said, beware of the risks.
For example, a couple of months ago, SIA gave a $1-20 dividend per share when the price was around $14-00, thus yielding about a 8.5% return, even if you had bought the shares one day before the books closed. Yesterday, SIA closed at $10-16. Which means that you are still worse off by $2-64 cents per share from your purchase price - down by nearly 20% from your $14-00 purhase price, even after taking the $1-20 dividend you receive.

The matter of non-tax on dividends is actually a non-issue, I feel. Whether you are a millionaire or making $2K per month, a tax saving is a tax saving.

In the meantime, explore this site - maybe you will be able to understand better.

http://yieldstocks.reitdata.com/

IMPORTANT DISCLAIMER - my comments are NOT to be taken as an inducement to invest in the stock market but purely as a friendly discussion point for forummers who need information.