Dividends can be a valuable income stream, but the type of dividend, whether franked or unfranked, plays a key role in how much tax you’ll pay, both in Australia and potentially in your country of residence.
If you're classified as a non-resident for tax purposes, you are subject to specific withholding tax rules in Australia. These rules primarily apply to passive income, such as interest and dividends. Knowing how these taxes work can help you avoid unexpected liabilities and ensure you're complying with Australian tax laws.
