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    monica g's Avatar
    monica g Posts: 1, Reputation: 1
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    #1

    Nov 4, 2009, 03:44 PM
    Treatment of Tax Credits on Dividends
    When dividends are received there is always a tax credit figure. What figure gets shown in the company accounts as the amount of dividend. i.e.. The amount received by shareholders or the full amount before tax credits. Having severe memory loss as how to treat this correctly. Any advice gratefully received!!
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
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    #2

    Nov 5, 2009, 04:22 AM
    The dividend-issuing company records the full amount of the dividend, as a dividend payment.

    This is true regardless of any credits that happen at the shareholder level, or if the issuer has to hold back a portion of the dividend as a tax withholding, and remit it to the gov't.
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