This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. Find sources: "Australian dividend imputation system" – news · newspapers · books · scholar · JSTOR(May 2018) (Learn how and when to remove this message)
The Australian dividend imputation system is a corporate tax system in which some or all of the tax paid by a company may be attributed, or imputed, to the shareholders by way of a tax credit to reduce the income tax payable on a distribution. In comparison to the classical system, dividend imputation reduces or eliminates the tax disadvantages of distributing dividends to shareholders by only requiring them to pay the difference between the corporate rate and their marginal rate. If the individual’s average tax rate is lower than the corporate rate, the individual receives a tax refund.
The objective of the dividend imputation system is to eliminate double taxation of company profits, once at the corporate level and again on distribution as dividend to shareholders. Under the previous system, the company and shareholders had an incentive for the taxed income of the company to be retained by the company, or for the business activity not to be undertaken using a corporate structure.
and 19 Related for: Australian dividend imputation system information
The Australiandividendimputationsystem is a corporate tax system in which some or all of the tax paid by a company may be attributed, or imputed, to...
Dividendimputation is a corporate tax system in which some or all of the tax paid by a company may be attributed, or imputed, to the shareholders by...
company. Australia and New Zealand have a dividendimputationsystem, wherein companies can attach franking credits or imputation credits to dividends. These...
subject to the Australiandividendimputationsystem, under which Australian-resident shareholders who receive a dividend from an Australian company that...
attached to dividends under the dividendimputationsystem. Those credits can only be used by eligible investors (see the dividendimputation article),...
30% for non-residents, and 15% for residents. There is also a dividendimputationsystem that allows shareholders to claim a credit for the taxes that...
A Division 7A dividend in the Australian tax system is an amount treated by the Australian Tax Office (ATO) as an assessable dividend of a shareholder...
by the corporation (a process known as dividendimputation). A withholding tax applies on unfranked dividends paid to non-resident shareholders. From...
typically around 6.5%, because: the dividendimputationsystem allows a credit for imputation credits on Australian shares, which may result in a tax refund...
received the dividend and then used the money to buy shares. The dividend is taxed like any other dividend (including with any dividendimputation), and the...
floating the Australian dollar in December 1983, reductions in trade tariffs, taxation reforms such as the introduction of dividendimputation to eliminate...
countries such as Australia, Chile, Mexico, and New Zealand employ imputation tax systems which allow corporations to redeem imputation credits for tax...
integration of entity and member taxation. This may be accomplished by "imputationsystems" or franking credits. In the past, mechanisms have existed for advance...
Australian history, and reform of the taxation system, including the introduction of capital gains tax, fringe benefits tax, and dividendimputation....
of income. dividends Payments by a corporation of all or part of its profit to its stockholders (the corporate owners). dividendimputation A corporate...
assets, dividends can be paid between group companies without incurring tax liabilities, and tax attributes of one group company such as imputation credits...
at the individual level (double taxation), the imputation tax credit for dividends and treasury system gains was introduced. After the 1992 tax reform...
merchantability – Importation right – Impossibility of performance – Impotence – Imputation – in camera – In chambers – in curia – in delicto – in esse – In fee simple –...
Global Information