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RF 8: Certain dividends
or “Which dividends paid to non-residents are taxable and at what rate”
You could also call this:

“Explaining how to calculate when a dividend is fully imputed”

This section explains how to work out if a dividend is fully imputed. You use this information for other parts of the tax law.

To figure out if a dividend is fully imputed, you need to use a special maths formula. The formula looks at the imputation credit amount and any supplementary dividend amount. It also uses the basic income tax rate for the year the dividend is paid.

The formula is:

(imputation credit amount + supplementary dividend amount) × (1 - tax rate) ÷ tax rate

Here’s what the different parts of the formula mean:

The imputation credit amount is the amount of imputation credit attached to the dividend.

The supplementary dividend amount is any extra dividend paid under the rules for supplementary dividends.

The tax rate is the basic income tax rate for the year the dividend is paid. You can find this rate in the tax laws.

By using this formula, you can work out how much of the dividend is fully imputed.

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Next up: RF 10: Non-cash dividends

or “Paying tax on non-cash dividends that aren't fully imputed”
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Part R General collection rules
Withholding tax on non-resident passive income (NRWT)

RF 9When dividends fully imputed

  1. This section applies for the purposes of sections RF 8, RF 10, RF 11B, and RF 11BB to determine the extent to which a dividend is fully imputed.

  2. The extent to which a dividend is fully imputed is calculated using the formula—

    (imputation credit amount + supplementary dividend amount)× (1 − tax rate) ÷ tax rate.

    Where:

    • In the formula in subsection (2),—

    • imputation credit amount is the amount of an imputation credit attached to the dividend:
      1. supplementary dividend amount is the amount of a supplementary dividend payable under subpart LP (Tax credits for supplementary dividends) for the dividend:
        1. tax rate is the basic rate of income tax set out in schedule 1, part A, clause 2, (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits) for the tax year in which the dividend is paid.

          1. Repealed

          2. Repealed

          3. Repealed

          4. Repealed
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          Notes
          • Section RF 9 heading: amended, on , by section 276(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
          • Section RF 9(1): amended (with effect on 30 August 2022), on , by section 110 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
          • Section RF 9(1): amended, on , by section 276(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
          • Section RF 9(1): amended (with effect on 1 July 2011 and applying for income years beginning on or after that date), on , by section 129(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
          • Section RF 9(1): amended, on , by section 114 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
          • Section RF 9(1): amended (with effect on 1 April 2008), on , by section 533(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
          • Section RF 9(3)(c) tax rate: amended, on , by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
          • Section RF 9(4) heading: repealed, on , pursuant to section 276(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
          • Section RF 9(4): repealed, on , by section 276(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
          • Section RF 9(5) heading: repealed, on , pursuant to section 276(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
          • Section RF 9(5): repealed, on , by section 276(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
          • Section RF 9(6) heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on , pursuant to section 129(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
          • Section RF 9(6): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on , by section 129(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
          • Section RF 9(7) heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on , pursuant to section 129(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
          • Section RF 9(7): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on , by section 129(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
          • Section RF 9 list of defined terms FDP: repealed, on , by section 276(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
          • Section RF 9 list of defined terms FDP credit: repealed, on , by section 276(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
          • Section RF 9 list of defined terms fully credited for conduit tax relief: repealed (with effect on 1 July 2011), on , by section 129(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).