Document ID: chunk:federal_register_of_legislation:C2025C00014:section:44:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 44 (pt 1/2)
Character Range: 270360–272985

44  Dividends
 (1) The assessable income of a shareholder in a company (whether the company is a resident or a non‑resident) includes:
 (a) if the shareholder is a resident:
 (i) dividends (other than non‑share dividends) that are paid to the shareholder by the company out of profits derived by it from any source; and
 (ii) all non‑share dividends paid to the shareholder by the company; and
 (b) if the shareholder is a non‑resident:
 (i) dividends (other than non‑share dividends) paid to the shareholder by the company to the extent to which they are paid out of profits derived by it from sources in Australia; and
 (ii) non‑share dividends paid to the shareholder by the company to the extent to which they are derived from sources in Australia; and
 (c) if the shareholder is a non‑resident carrying on business in Australia at or through a permanent establishment of the shareholder in Australia, and the company is a resident:
 (i) dividends (other than non‑share dividends) that are paid to the shareholder by the company and are attributable to the permanent establishment, to the extent to which they are paid out of profits derived by the company from sources outside Australia; and
 (ii) non‑share dividends that are paid to the shareholder by the company and are attributable to the permanent establishment, to the extent to which they are derived from sources outside Australia.
This subsection does not apply to a dividend (or non‑share dividend) to the extent to which another provision of this Act that expressly deals with dividends includes some or all of the dividend (or non‑share dividend) in, or excludes some or all of the dividend (or non‑share dividend) from, the shareholder's assessable income.
Note 1: Some other provisions that expressly deal with dividends are sections 23AI, 23AK and 128D of this Act and section 768‑5 of the Income Tax Assessment Act 1997.
Note 2: An amount declared to be conduit foreign income is not included in assessable income under paragraph (1)(b) or (c): see section 802‑15 of the Income Tax Assessment Act 1997.
 (1A) For the purposes of this Act, a dividend paid out of an amount other than profits is taken to be a dividend paid out of profits.
 (1B) Where:
 (a) the amount of the moneys or of the value of other property of which a dividend paid by a company consists is debited against an amount standing to the credit of a share capital account of the company; or
 (b) a dividend paid by a company is a repayment by the company of an amount paid‑up on a share;
the dividend shall, for the purposes of this section, be deemed to have been paid by the company