dividend

hongyan1203

问个问题 关于dividend 的，母公司是境外的，要付dividend给境外，withholding rate 15%但是如果付了fullly franking dividend 就不用付了
那么做帐怎么做呢？假设付300K到手给shareholder

Dr: retainded earing  428 ( 300*30/70）
   Cr dividend payable  428
Dr  dividend payable  428
     Cr Cash 300
           Franking credit 128
我想问这样不就是减少ｒｅｔａｉｎｅｄ　ｅａｒｉｎｇ　　４２８Ｋ　么，实际税率是３０％，但是这个ｆｒａｎｋｉｎｇｃｒｅｄｉｔ　留在这算什么呢？股东在国外又享受不到ｉｎｃｏｍｅ　ｔａｘ　ｃｒｅｄｉｔ　的，我想请问懂得人指点指点，

noaircn

这个问题我也想知道， 我们公司明年也会有这种情况。求答案

hongyan1203

后来我想了一下，ｆｒａｎｋｉｎｇ　ｃｒｅｄｉｔ也是在ｅｎｑｕｉｔｙ里面的，所以最后也就是Ｄｒ　ｅｑｕｉｔｙ　＄３００　Ｃｒ　Ｃａｓｈ　＄３００，
实际税率３０％，就一次ｉｎｃｏｍｅ　ｔａｘ　ｐａｙａｂｌｅ，　

redhotliu

Not exactly,

You have to confirm the treatment with parent entity as far as consolidation purpose concerned.

If your company is fully owed by oversea parent entity, the "dividend" you paid might not be the really dividend. Its just an IC loan. Parent entity asked you to pay the"dividend" to support their dividend payout activity. Therefore DR IC CR cash. This will not touch your retain earnings.In the parent entity side, this wont touch The Investment in XXX.

However, if this is real distributable dividend, you are right. But  we never touch retain earning account unless YE rolling over. We have a separate account call Dividend Paid in equity. Also I wont worry about franking credit as this is treated separatly in tax journals. therefore the net reduce in your equity is what you paid which is only 300 as you mentioned above.