I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

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Value Investing
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Tuesday, 14 April 2009

Dividends are tax exempt

I didn't really follow the changes in One-Tier Corporate Tax System (Applies to all companies) until today when one blogger mentioned it.

Dividend paid out of "after tax profit" will be exempt from tax in the hands of shareholders (exempt one-tier dividends).

Payment of dividends on or after 1 Jan 2008

Effective from 1 Jan 2008, all companies remaining on the imputation system will be moved to the one-tier corporate system.

All dividends paid on or after 1 Jan 2008 will be exempt one-tier dividends. Companies cannot pay franked dividend on or after 1 Jan 2008 even if there is any Section 44A balance remaining as at 31 Dec 2007.


With the new tax development, Dividends as passive income has becoming more attractive over rental as alternate source of passive income as it is tax exempted.


http://createwealth8888.blogspot.com/2009/04/passive-income-after-retirement.html <-- previous post
Posted by Createwealth8888 at 19:39
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