dividends

Busy these few days...
Long time no talk abt finances...

Anyway, there r 3 types of dividends
1) Less Tax
2) Exempt
3) One Tier


1) Less Tax dividend = dividends which have tax credits. meaning, IRAS will pay u back if there is no personal tax. But this system will end in YA 2007 which is this yr...

2) Exempt dividend are tax free dividends, as simple as that...

3) One Tier dividends are dividends that is already taxed but there will not have any tax credit

Eg:
Gross dividends: $100, Income $100

Less Tax: Paid $80 in yr 1, $20 in yr 2. Total 100
One Tier: $80 in yr 1, $0 in yr 2 Total 80
Exempted: Paid $100 in yr 1, $0 in yr 2. Total $100

now u know y i said Rich get richer, poor get poorer?