Understanding Franking Credits
Modified on: Wed, 13 Jan, 2021 at 10:15 AM
Company makes taxable profit of $100
Pays tax at x rate
Can only pay dividend from the retained earnings i.e. the profit after tax
Can only frank the dividend with credits available at the given tax rate (not the available franking credits in the franking account).
Read more at the ATO Website
How to use the Share Register & Franking Account
Accounting and Tax Facts for Dividends
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