A dividend is a payment from a company to its shareholders. You can earn a dividend if you own stock in a company that pays them but not all stocks necessarily pay dividends.
Unlike bonds, dividends on equities do not carry fixed payment dates and therefore may vary from one year to the other. Please be assured that once the coupon is received by us, it will be promptly posted to your account.
For dividends on Equities, tax is typically withheld at source based on the applicable requirements of where the company is listed. This means that tax rates may vary from one issuer to another. The remittance advice that we send you will indicate whether tax was deducted at source as well as the amount deducted. For further information on how such payments may affect you, it is recommended for you to contact a tax advisor.
An interest or coupon payment, on the other hand, is the annual rate of interest paid on a debt security, normally a bond, expressed as a percentage of the face value. This payment is typically paid from issue date until maturity date. Interest payments are typically due either annually or semi-annually.
For income on bonds, Moneybase offers the option to deduct the 15% final withholding tax and report to the tax authorities on behalf of a client.