guernseyguy
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I'm an Irish tax payer with Australian shares that pay dividends twice a year. The dividend statement shows a gross amount which includes an imputed tax amount (also called a franking credit) and a net amount which is what I actually receive into my bank account. As I understand it, the franking credit reflects the underlying tax paid by the Australian company on its profits.
(1) To calculate my Irish income tax liability, can anyone confirm which figure goes on my income tax return - is it the gross figure including the franking credit or the net figure without the franking credit? (2) Also, is the imputed tax/franking element creditable for Irish tax purposes under the double taxation treaty etc? I would appreciate any advice as the taxation of foreign dividends seems to be a very complex and confusing area. Many thanks in advance.
(1) To calculate my Irish income tax liability, can anyone confirm which figure goes on my income tax return - is it the gross figure including the franking credit or the net figure without the franking credit? (2) Also, is the imputed tax/franking element creditable for Irish tax purposes under the double taxation treaty etc? I would appreciate any advice as the taxation of foreign dividends seems to be a very complex and confusing area. Many thanks in advance.