1) 500*1.25+1700/(1-15%)+700*1.38 = 3591
因为500是CCPC dividend,所以taxable amount要Grossup@25%,700是Public company dividend,所以taxable amount要Grossup@38%。1700是net Foreign income 所以tax@gross amount,i.e. before the 15% withholding tax,但是会有credit for the tax paid to the foreign country。
2) To “be indifferent” between the two, the after tax cash 应该一样. 所以如果$1为本金
设dividend rate 为 x, dividend 就是 x*1
那么taxable amount after grossup 就是 1.25*x ,
tax before DTC 就是 1.25*x*46%,
因为题里说明DTC is equal to the grossup,所以DTC 是25%*x
那么after tax cash就是 x-(1.25*x*46%-25%*x)
对interest来说,after tax cash 是 0.1-0.1*46%=0.054
那么,let x-(1.25*x*46%-25%*x)=0.054,
x=8%。
My two cents。
因为500是CCPC dividend,所以taxable amount要Grossup@25%,700是Public company dividend,所以taxable amount要Grossup@38%。1700是net Foreign income 所以tax@gross amount,i.e. before the 15% withholding tax,但是会有credit for the tax paid to the foreign country。
2) To “be indifferent” between the two, the after tax cash 应该一样. 所以如果$1为本金
设dividend rate 为 x, dividend 就是 x*1
那么taxable amount after grossup 就是 1.25*x ,
tax before DTC 就是 1.25*x*46%,
因为题里说明DTC is equal to the grossup,所以DTC 是25%*x
那么after tax cash就是 x-(1.25*x*46%-25%*x)
对interest来说,after tax cash 是 0.1-0.1*46%=0.054
那么,let x-(1.25*x*46%-25%*x)=0.054,
x=8%。
My two cents。