The small business would like to pay dividend $10,000 in 2020
MYOB Company Tax Return shows: $3,793 Franking Credit(27.5%)
However, MYOB Individual Tax Return shows: $4,285.71 Franking Credit(30%)
Is it correct for the individual?
If not correct, how to fix or match the Franking Credit?
Hi JPEARLS
Thank you for your enquiry.
Our software is calculating the correct 30% for franking credit in an individual return.
Where a taxpayer has received a franked dividend from an SBE company you will need to manually overwrite the franking credit to equal 27.5%. This is because there is no label in the income section where Dividends are reported to mark the Company paying the dividend is a SBE.
Regards,
Sandy
Client Support Representative
