ST Engineering    Last:7.63    +0.12

ST Engg

Possible price divergence with Acc/Dist line.... looking good I think. But wait for actual price movement upwards to confirm.

 

In other words, if the dividend is non tax-exempt, then those with income tax brackets lower than 10% will lose out to those with tax bracckets higher than 10%. Or is it for those higher than corporate tax than it is advantage while it is a disadvantage for those who pay tax below corpoarte tax ?

 

The conversation is now in the fellowship thread

 

OMG! You paying 45 percent tax for the Aussies to drink beer .. :)

Heard that the dole there is better than working for a salary.

 

Yes asterisk,That is what actually happening rite now.

45% is the higest tax bracket.It is progressive tax system.

Yes have to pay for to keep the unemployed,old age pensioners,handicap,single mothers,new migrants,study allowances for students....the lists goes on.GST here is 10%.

 

 

My understanding is this.

The divvy is received in spore will not be sujected to witholding tax of 10%.Thta is mine to keep.

Unfortuntely,The Australian taxation law states that  i have to declare the divvy i recieved from spore and be added on to the rest of my income from australia.

My tax in australia will depend on my marginal rate of tax,which is 45%.

Sometimes u wonder why bother to work hard in australia. 

 

Asterisk,

No, no,........ there is no discrimination of companies or individuals.

What I meant was, if A (a tax exempt company) declares divident to share holders (Company B and/or individuals), they will enjoy this tax exempt benefit.

Obviously and individual shareholders of A will not be declaring divvy to anyone else.

But, if B declares divvy to their shareholders from the TE divvy they received from A, then, company B's shareholders (companies and/or individuals) will not benefit from the TE status of A and the divvy will be taxable........ cos they are not direct shareholders of A...... i.e. Company B's shareholders are 2nd tier of Company A.....

Hope its clearer.

 

I may be wrong but companies (say company A) that declare Tax Exempt divident may be enjoying some tax concessions from the Spore govt.....(e.g. Economic Development Board) for their investments or business activity. This benefit is passed down to share holders of A (who may be individuals or another company) as divident....I think the 1 tier comes from this passing of tax concession benefit.

For example, if the shareholder of A is another company (B), the divident to B is tax exempt too. But if B declares divident to its shareholders, then divident from B will not enjoy tax exemption......so the TE is only for 1 tier.

Perhaps someone can confirm this.

Thanks

 

Hi geojam, there is 10% withholding tax similar to those DPU by Reit.

 

 

Asterisk

U are scholar in uncle's eye can already.

So what about foreigners?We also just receive the whatever they give?

No more tax will be withheld?

 

Asterisk,my young scholar

So no more such thing as 10 cents less 18% tax kind of thing in futue?

Thanks.

 

Sporeguy,

Shplayer is absolutely right. There's two types of dividend (1-tier and franked).

To cut long story short, in future all individual passive income such as dividends and interests will not be taxed at personal basis.

Adv: Simplicity

Disadv: The poorer get taxed more

 

Sporeguy,

Yes, divvy is tax exempt (TE) ......I have seen 1 Tier but can't recall coming across 2 tier. Sorry, I don't know the significance of the '1 tier'.

All I know is when its TE, you will receive the full amount of divvy.

There is another divvy where they specify S44 (section 44). In this case, corporate tax (20% before, but 18% now) will be deducted at source. However, you will receive a proportionate refund if your income tax bracket less than the corporate tax.

Perhaps other forumers can clarify?????

 

Hi Sporeguy,

The value of AD doesn't mean anything by itself. Its the trend of the AD line that is the important factor. 

The trend for this one is unclear. But the large drop on Friday is not well supported by the volumes. I think it may continue to uptrend.

 

Thanks shplayer. I think it is also tax-exempted. Ya, What is the diff btw tax-exempt tier 1 and tier 2 ?

 

Sporeguy,

15.11 ct divvy was for FY06 (first and final).....i.e full year. But, from 2007, Co will pay interim and final.

Because of its strong cash position, STE has traditionally paid out 100% of profits.

Please note that 1Q07 due on 2 May.

 

Sporegal, care to comment on whether stevenkoh post is correct or not

regarding "AD is extreme high and its show that the big player is getting out now".

Shplayer, is the div of 15.11 c per yr or per halh yr ?

 

Target achieved. see my post below

Hit 3.70 today....

:)

 

hi Eastonbay, I am now back...as you note in the fellowship post.... yes such is the marvel of IT nowadays: the world is truely a global village....  and yes just managed to let go another few lots at 3.60.... rest just holding on for the fun of it...... I  can then spent my next 36hrs no need to log on in peace...

 

Can anyone enlighten me what happen? How did it drop to 3.48 near end of trading hour? Any advise is it still ok to hold on and any target price in the near term and support level for this counter. Is it still bullish. Thanks