Dividends with Imputation Credits

How can dividends with imputation credits be entered? The dividend is paid into a bank account but it also includes a tax credit. The Dividend form does not allow negative tax amounts.


Paid      Code  Shares  Dividend  Imputation  Total
23/03/21  REA       64    $37.76      $16.19  $53.95

Dividend Imputation:

Dividend imputation is a corporate tax system in which some or all of the tax paid by a company may be attributed, or imputed, to the shareholders by way of a tax credit to reduce the income tax payable on a distribution. In comparison to the classical system, it reduces or eliminates the tax disadvantages of distributing dividends to shareholders by only requiring them to pay the difference between the corporate rate and their marginal tax rate. The imputation system effectively taxes distributed company profit at the shareholders’ average tax rates.

Australia, Malta[1] and New Zealand have imputation systems. Canada, Korea and the United Kingdom have a partial imputation system.[2] Germany had a dividend imputation system until 2000 and France until 2004.

I edited the xml directly to create this screen. Amount paid into bank account is $37.76 and real value for analysis is $53.95:

Hey flywire,
as I do not know that sort of system my guess is that the “Total” is to be compared with the actual dividend being payed based on the shares (in case you are part of a full imputation system). In that case you book the dividends (the “Total”) with no taxes. However, this would not consider the taxes you pay on the dividends through your income taxes.

I my be wrong, though

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@Harry_Hirsch I tend to agree and note your previous response that tax systems are not properly accounted for.

There is, however, the possibilty to book tax refunds in PP as well. I think you need to find the best solution for yourself as we all will not get taxes 100% correct.