ETF withholding tax?
- Thread starter FintanJ
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Thanks for the reply. I’m using DEGIRO.
I know the tax rate in Ireland is 41%. If it is case you only get tax credit in Ireland for 15%, and have to reclaim the balance of the tax from German revenue then for me a German domiciled ETF is not worth the effort. I am not willing to go through the admin that is described in separate thread re German shares by Brendan.
I know the tax rate in Ireland is 41%. If it is case you only get tax credit in Ireland for 15%, and have to reclaim the balance of the tax from German revenue then for me a German domiciled ETF is not worth the effort. I am not willing to go through the admin that is described in separate thread re German shares by Brendan.
The tax on dividends from ETFs is 41% in all cases - it doesn't matter whether DWT is deducted or not
If it is then you get a credit for the tax paid abroad, up to the DTT limit (usually 15%) and can reclaim any over that from the foreign authorities.
As for Degiro, it is not clear to me what DWT the deduct.
For an Irish company, they deducted 25% DWT as I would have expected
I have a French company dividend due shortly, so it will be interesting to see what they deduct - I would expect 12.8% but who knows
It looks like they will deduct 26.5% which is the income tax & social security tax rate for a French resident - as a non-resident, the rate should be 12.8%
They have a web page related to DWT tax https://www.degiro.ie/tax
They say that the tax can sometimes be deducted before they receive the dividend and sometimes they deduct it. As it depends on the type & source of the income payer and the type and residence of the income receiver, I imagine it is difficult to have the correct amount deducted in all, if not most, cases
If it is then you get a credit for the tax paid abroad, up to the DTT limit (usually 15%) and can reclaim any over that from the foreign authorities.
As for Degiro, it is not clear to me what DWT the deduct.
For an Irish company, they deducted 25% DWT as I would have expected
I have a French company dividend due shortly, so it will be interesting to see what they deduct - I would expect 12.8% but who knows
It looks like they will deduct 26.5% which is the income tax & social security tax rate for a French resident - as a non-resident, the rate should be 12.8%
They have a web page related to DWT tax https://www.degiro.ie/tax
They say that the tax can sometimes be deducted before they receive the dividend and sometimes they deduct it. As it depends on the type & source of the income payer and the type and residence of the income receiver, I imagine it is difficult to have the correct amount deducted in all, if not most, cases
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This is due to the number of possibilities the intermediaries would have to cater for - even if the EU step in to mandate an automatic system, this would entail 27 x 27 different possible interactions between the source and destination tax regimes.
Of course, if there was a unified tax system across the EU ....
Covered in more detail in this thread
If you have the "right" sort of income then you can get a credit for DWT in Ireland however, a UCITs ETF or Irish Unit Linked policy from a Life Assurance company is the "wrong" sort of income and typically results in marginal tax rates of around 49.85% as we set out in our tax guide here
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If you have the "right" sort of income then you can get a credit for DWT in Ireland however, a UCITs ETF or Irish Unit Linked policy from a Life Assurance company is the "wrong" sort of income and typically results in marginal tax rates of around 49.85% as we set out in our tax guide here
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