Published: February 07, 2019
What are franking credits, how do they work and who is entitled to them?
A franking credit is an entitlement to a reduction in personal income tax payable to the Australian Taxation Office. The entitlement is offered to individuals who own shares in a company (“shareholders”) in recognition of the tax on profits paid by that company. It is attached to a dividend which the company pays to shareholders out of its after-tax profits. The value of the franking credit is equivalent to the tax paid on the individual’s share of the company profit before it was distributed as a dividend.
Continue reading...from The Guardian http://bit.ly/2SnD02c
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