Hi
I would like to know if I am a share trader under the structure as Pty Ltd Company, can I claim the franking credit (I understand the franking credit will also be added to taxable income)? Will it be also passed the Base Rate Entity test (i.e. 25%) for share trader business (or the small business income tax offset max. $1,000 for sole trader)?
Hi @Laurasusan,
A share trader gets their income from purchasing and sells shares in a business way. If this is part of the companies business model, then yes. As a share trader the profits from the sale of shares is assessed as ordinary income.
If the company is a base rate entity for the 2021-2022 financial year, the rate is 25%.
We've some fantastic information on our web site that talks about difference the between share investing and share trading.
Check out the changes to company tax rates, also on our web site.
Hi @Laurasusan,
A share trader gets their income from purchasing and sells shares in a business way. If this is part of the companies business model, then yes. As a share trader the profits from the sale of shares is assessed as ordinary income.
If the company is a base rate entity for the 2021-2022 financial year, the rate is 25%.
We've some fantastic information on our web site that talks about difference the between share investing and share trading.
Check out the changes to company tax rates, also on our web site.
Hi Caro,
Thank you for your reply and information.
I have read those information before, however, it did not mention about the franking credit (whether I can claim the franking credit or not). Could you please confirm?
Also, "share trader" is the only activity for the company, is that mean the company will pass the Base Rate Entity test?
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