The following summarizes the U.S. federal tax treatment of the quarterly dividend distributions to stockholders made by the Company.
If you are a U.S. taxpayer, cash dividends paid to you during the Company's fiscal year ending September 30, 2007 ("FY07") represent taxable dividends to stockholders because Qualcomm had positive "earnings and profits" ("E&P") for tax purposes in FY07. No later than January 31, 2008, Computershare Investor Services, the Company's transfer agent, mailed to Qualcomm registered stockholders (stock held in certificate form or Direct Registration) an IRS Form 1099-DIV reflecting the distribution that is a taxable distribution (Box 1b Qualified Dividends). If you hold your shares in street name (through a bank or broker) and your dividend was deposited into your brokerage account, you will receive a Form 1099-DIV from that institution.
(Note: If you are a U.S. taxpayer, distributions paid to you during the Company's fiscal year ending September 28, 2004 were treated as a non-taxable return of capital reducing the adjusted basis in your common shares because the Company had no current or accumulated earnings and profits for U.S. federal income tax purposes. If such distributions reduce your adjusted basis to zero, any subsequent non-taxable distributions received by you will be treated as capital gain.)
Each stockholder is urged to consult with a tax advisor to determine the basis in their Qualcomm stock and the tax consequences of the distribution, including any state, local or foreign tax considerations.
Dividend History for Qualcomm Incorporated