AGY 2.35% 8.3¢ argosy minerals limited

Since you are not a resident for tax in Australia that is all...

  1. 418 Posts.
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    Since you are not a resident for tax in Australia that is all the more reason for you to not want franked dividends.
    I am not aware of any mechanism available for oversease investors to claim back the 30% ( typical ) withholding tax --- called franked dividends.

    Unfranked maybe..... depending on your personal tax rate in Netherlands.
    Let's assume you personal efective tax rate is that is higher than the flat 15% dividend tax.... in that case dividends could be actually beneficial to you, provided there isn't an even more CGT regime in Netherlands.

    Australia dividends are taxed at personal income tax at your effective tax rate.
    This is very unlike the flat dividend tax you pay in Netherlands at 15%.
    South Africa use to be the same.... no tax on dividends, then it was 15% for a while and now 20%.... but it is still a flat tax that is outside of income tax.
    The 30% is withheld as a credit for you in Austrlia and then when you submit a return the ATO knows your actual effective tax rate ( not marginal )... you are taxed on all your income including the gross dividends at you effective tax rate.
    For your effective tax rate to be higher than 30% you have to earn more than $180k... at which stage you will have to pay even MORE tax on that dividend... you will not get any refund at all.

    You say that you can claim the tax back above 15%.... but that would be very unusual and not in line with what I know about other tax jurisdictions. Normally you would only get credit up the to maximum that you would have paid had you paid the tax in your own tax residence.
    If Netherland has a flat 15% then you can claim up to 15% back... not above.
    Think about it.... if they allow you to claim more than 15% they would effectively be paying money out of their pockets to fund another tax regime.... sounds generous... if that is true maybe I should move to Netherlands if other laws are equally generious.

    Another factor is DTA agreements between the countries... but I digress, this is relevant to investing and tax but not so much to AGY.....


 
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