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For CALCULATING the NONRESIDENT CREDIT  Form

For CALCULATING the NONRESIDENT CREDIT Form

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what are franking credits in Australia franking credits are a form of tax credit paid with company dividends they arise as part of the imputation system and prevent the government from double taxing profits you can think of franking credits as tax credits paid by the company which can be claimed back from the Australian tax office in an income tax return for example let's say a company with one shareholder earns $10000 in profit the company is taxed by the tax office at 30% or $30 $70 is the company's net profit after tax which could be paid as a dividend to its shareholder ordinarily if the company decided to pay all of its profits to its only shareholder the ATO would tax the shareholder at their marginal tax rate that is on the entire $70 however the imputation system was introduced to stop double taxation by the ATO by recognizing the $30 of tax already paid by the company on the shareholders behalf so in this example the shareholders dividend is actually $100 with

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