Tax withholding on dividends

Discussion in 'Shares & Funds' started by melbourne171, 25th Sep, 2021.

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  1. melbourne171

    melbourne171 Well-Known Member

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    It is the first year I invested in shares with Commsec. Commsec report shows dividends of $1999 but I only get paid $1000 into the Comsec Cash account. Does it mean I did not give tax file number to share registrar i.e. LINKS and they withhold my maximum tax at 47%?

    How can I claim back this tax withholding? Do I have to pay tax again when I do tax return?
     
    Last edited: 25th Sep, 2021
  2. Mark F

    Mark F Well-Known Member

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    Yep. You will need to claim the tax withholding in your tax return for the tax year in which it was deducted. The withholding will reduce your tax liability for the year. The rest of the return will determine whether you get a refund or a lower tax bill.
     
  3. willair

    willair Well-Known Member Premium Member

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    I would say yes--and a good introduction to the complexity of financial markets.
    .
    I'm not 100% sure but maybe when you purchased this holding you would have been asked to quote your ''TFN''..
     
  4. melbourne171

    melbourne171 Well-Known Member

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    Thanks for your help

    I got letters from LINKS to update TFN but I ignored them because I have already given Commsec my TFN.

    Now I have to go to LINKS to update TFN.
     
  5. tedjamvor

    tedjamvor Well-Known Member

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    It depends on the share itself but you'll need a computreshare account or similar to register your TFN to make sure withholding is done correctly.
     
  6. SatayKing

    SatayKing Well-Known Member

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    A good but hard lesson. Never assume when it comes to these matters. Register with the share respective share registry and always check the information is complete and accurate.
     
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  7. Mark F

    Mark F Well-Known Member

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    You need to register your TFN with each registry that manages your individual shares (eg Computershare, Boardroom) and ensure that you allow them to roll your information automatically when you add a new company to your portfolio.
     
  8. SatayKing

    SatayKing Well-Known Member

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    And with Boardroom and Link Market Services, should you have similar holdings in different entities e.g. personal and SMSF have ARG, you can link those holdings despite there being different HINs. No so with Computershare however. Need separate registrations which is slightly inconvenient.

    Watch out for any FACTA/CRS self-certification requirements too.