Shell A or Shell B?

[sunnydonkey]

Not a discussion on the share but an example to compare the tax processing of the UK/EU dividends in Ireland.

Both Shell shares are identical; the A shares are quoted in Amsterdam and a dutch withholding tax is applied on dividends of 33%, I think.

The B shares are quoted in London and a UK tax credit applies to the dividend payments.

Any views on which mechanism is better for an Irish taxpayer?

 

[rob oyle]

There's effectively no DWT on the UK share, the tax credit is a misnomer from our perspective. Be careful as the Dutch deduction may not all be offset against the Irish liability, some may have to be reclaimed directly.
It may not be possible to elect for scrip dividend on the Amsterdam holding.

 

[sunnydonkey]

There's effectively no DWT on the UK share, the tax credit is a misnomer from our perspective. Be careful as the Dutch deduction may not all be offset against the Irish liability, some may have to be reclaimed directly.
It may not be possible to elect for scrip dividend on the Amsterdam holding.

Thanks! I had suspected exactly the same as you but i've done further research and come up with some surprises. Firstly, even if you have B shares, all scrip dividends are paid in A shares BUT dutch withholding taxes are not collected on A scrip shares, so there would be no hassle with double taxation etc.
So, on the face of it, A shares might be a better bet for an Irish resident who is happy to take scrip dividends ; The shares are quoted and dealt in Euros, no dutch withholding taxes, and no stamp duty on purchase...

PS the dutch dividend withholding tax is 15%, not 33% as I thought earlier.