Concessionary Group Treatment for Dividend Income

Key requirements

Ordinarily, expenses are matched to dividend income from the same block of shares and excess is disregarded. The concession allows deficits to offset net dividends from other blocks in the same prescribed group. The groups distinguish non-income-producing shares, tax-exempt dividends, taxable foreign dividends remitted to Singapore and income-producing foreign shares with unremitted dividends. A deficit cannot cross into another group or unrelated income. Expenses of the unremitted foreign-dividend group may have the stated liberalised carry-forward treatment. Foreign tax credit also requires a calculation consistent with the grouped net income. Keep share-block and remittance records; this concession does not permit transferring investment losses between different companies.