To help you through the complexity of bonus issues, MAUS Stockmarket Plus has a Wizard to assist you in determining the cost of bonus shares/units and whether they are subject to capital gains tax or can be treated as a dividend.
The treatment of bonus shares or units is different from a dividend reinvestment plan in that the shareholder does not have the option of taking a cash dividend instead of the bonus shares.
From a taxation viewpoint, the paid-up value of the bonus shares/units may be taxed as a dividend and the bonus shares/units may be subject to capital gains tax depending on a number of factors. In addition, the calculation of cost of the bonus shares/units may be different.
Once you have entered the details for the transaction, clicking the OK button will prompt you to run the Bonus Share Wizard
Follow the Wizard’s instructions to work out the cost of bonus shares/units.
NOTE: For more details regarding the calculation of bonus shares/units, please contact your local Taxation Office.