Imputation and Franking Credit Recognition

August 15, 2008 International TaxationNew Zealand Taxation  No comments

According to information provided by the New Zealand Parliament, the New Zealand and Australian governments are working on mutual recognition of Imputation and Franking Credit. Under the current tax regulations, investors have to pay tax on any dividends earned in New Zealand or Australia.

If the proposed recognition were to be adapted, investors and shareholders will be able to choose in which country they pay the tax on their dividends.

The issue of double taxation on dividends has been raised for many years, and if the proposed regulation were to be approved it would help the processes of further integration of the New Zealand and Australian economies