Foreign ETF Tax Advantage

D

dmoseley

Guest
Is anyone aware what exactly the foreign ETF (specifically Brazil if you know) tax advantage is...beyond that of the normal tax advantages that ETFs provide.

If any knowledgable experts here could shed some light on this I would be forever in debt. Thanks in advance!
 
I am really hoping someone can help me out with this question, or anything that is relatable!
 
dmoseley said:
Is anyone aware what exactly the foreign ETF (specifically Brazil if you know) tax advantage is...beyond that of the normal tax advantages that ETFs provide.

If any knowledgable experts here could shed some light on this I would be forever in debt. Thanks in advance!
Click to expand...

What are the normal tax advantages of ETFs ? I don't think there are any.
 
well for example if you are a stock picker, and were to buy and sell several different stocks (say chinese banks), you could do that and pay the associated tax on each bank stock. Or you could just buy an etf (for example (Global X China Financials ETF). Isn't your tax exposure less by doing it that way?

Then what I am wondering is is there something regarding over-seas tax code (Brazil in particular) that allows you to take advantage of the structure?
 
dmoseley said:
well for example if you are a stock picker, and were to buy and sell several different stocks (say chinese banks), you could do that and pay the associated tax on each bank stock. Or you could just buy an etf (for example (Global X China Financials ETF). Isn't your tax exposure less by doing it that way?
Click to expand...

If you own individual stocks, the capital losses and gains can be netted off one against the other. It is most likely that you will have some losses. Losses can even be carried forward and offset against future gains. Capital losses on other assets eg property can be offset against gains.

In an ETF none of this happens. All gains are taxed at 28% and losses can not be offset. In addition, tax is due every 8 years, even if you still hold the ETF - you are deemed to have made the gain, if there is one.

Then what I am wondering is is there something regarding over-seas tax code (Brazil in particular) that allows you to take advantage of the structure?
Click to expand...

I have no knowledge in this area.
 
You must log in or register to reply here.
Back
Top