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What is franking?

April 26, 2017franking

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What is franking?

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Franking refers to the percentage of the dividend that the company has already paid tax on. It is part of the Australian taxation system to ensure that investors do not have to pay double-tax on their investment (for example, tax paid by the company and then tax paid by the investor).

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The process of putting a permit, meter mark, or stamp on mail pieces.

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This is a term generally used in Europe in regards to postage meters. Franking is synonymous with stamping. An envelope that has received postage has been “franked.” Here in the U.