presidenttttt
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They seem super reputable, though I found their customer service processes a bit painful. I would trust them. Personally using eToro, trading 212 and revolut
Are investors happy with De Giro brokers
- Thread starter darvas
- Start date
Just a query for others with Degiro accounts. Re withholding tax on US stocks. What % is being deducted by Degiro for you?
I only have one US stock with Degiro. They're taking 35% off after saying 15% in the upcoming dividends area. I've only copped onto this now after them probably doing this taking 35% after saying 15% in upcoming for years. Whereas Trade Republic never takes more than 16.66% for my US stocks...
It should be around 15% in line with the Ireland-US double taxation treaty, right? Anyone else have this as an issue?
I only have one US stock with Degiro. They're taking 35% off after saying 15% in the upcoming dividends area. I've only copped onto this now after them probably doing this taking 35% after saying 15% in upcoming for years. Whereas Trade Republic never takes more than 16.66% for my US stocks...
It should be around 15% in line with the Ireland-US double taxation treaty, right? Anyone else have this as an issue?
It's 15%, but you have to apply for the lower rate. You need to complete a W-8BEN form and renew every three years.
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Going in to submit the W-8 now and I see the status of it was that it was rejected because my account information changed... is it possible they rejected it because country of my designated bank account isn't Ireland? (because it's with N26) but they never informed me. Hating Degiro more and more now...Even if I should have been more on the ball on the 15%.
You are able to reclaim overpaid tax from the US IRS with these forms but I don't know how complicated that is.
www.irs.gov
www.irs.gov
About Form 1040-NR, U.S. Nonresident Alien Income Tax Return | Internal Revenue Service
Form 1040-NR is used by nonresident alien individuals, estates, and trusts to file a U.S. income tax return.
About Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding | Internal Revenue Service
Information about Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, including recent updates, related forms, and instructions on how to file. Form 1042-S is used by a withholding agent for an information return to report certain income paid to addresses in foreign countries.
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Yes - that would be a reason for rejection. From the Degiro helpdesk:
In order to successfully apply for this ‘Relief at Source’ service, your country of residency, country of tax residency and bank account country should match (meaning, all should be registered in the same country).
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@Corola Trade Republic have given me this other explanation: While your W-8BEN form ensures that US-sourced dividends benefit from reduced withholding under US-Ireland tax treaty, #### is a Finnish company, and it's dividends are considered foreign-sourced - even when traded as ADRs on U.S. exchanges.
As a result, the W-8BEN form does not apply to ##### dividends, and the default Finnish withholding tax rate of 30% may be applied. In some cases, additional charges or platform-level fees may result in a total deduction of up to 36%.
Tried doing a google on taxation of ADR dividends but not getting a clear answer yet, would you know if the above is correct?
As a result, the W-8BEN form does not apply to ##### dividends, and the default Finnish withholding tax rate of 30% may be applied. In some cases, additional charges or platform-level fees may result in a total deduction of up to 36%.
Tried doing a google on taxation of ADR dividends but not getting a clear answer yet, would you know if the above is correct?
Shouldn't that be 35%?
Yes, ADRs are taxed according to their country of origin, not the US.
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I may be wrong but I think Trading 212 & Trade Republic still allows you to by Investment trusts.