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Taking dividends as shares, tax implications?

Atlantic Dawn · 2013-11-14 22:51:09

Some companies allow you to reinvest your dividend to get new shares, anyone know what are the tax implications of this when you come to sell or should tax be payed at time you get the new shares?

14-11-2013 10:51pm

#1

Atlantic Dawn

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Some companies allow you to reinvest your dividend to get new shares, anyone know what are the tax implications of this when you come to sell or should tax be payed at time you get the new shares?

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#2 17-11-2013 7:39pm

ixtlan

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Dividends are treated just like regular income. It should be declared to Revenue and tax should be paid on the value by Oct 31 of the following year. Ideally you would put the details on a form 11, but if the amounts are small perhaps a note to Revenue may be sufficient.

It's irrelevant what happens to the dividends. If the funds are used to reinvest in the same shares, it's the same as if you got the cash and went out yourself to buy the shares. It will make calculations on capitals gains more complicated later. Keep good records.

Ix

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