Does anyone know which country’s capital gains and dividend taxes apply to airbus shares please? There are two listings on t212, one in France and the other in Germany. The company is registered in the Netherlands. Does Netherlands tax law apply or is it the country the shares are bought in? If it’s Netherlands tax law, does anyone know what percentages these taxes are for someone who doesn’t live in the Netherlands? I’m in the UK.
Thanks in advance
@Kwabenanti2002 As a general rule you will pay taxes of the country in which the stock is being traded.
Therefore, if you get it in Euronext Paris for example, you need to pay the French tax; if in the Deutsche Börse Xetra, then the German tax.
Furthermore, you need to pay taxes in your country (UK in this case) since it’s an income.
So to sum up: you need to pay tax in the country where it’s being traded and tax in the country in which you live.
Thanks for the reply @wdavis. That’s what I thought and then I read this from airbus’ website so got very confused. Here’s an extract from this link (https://www.airbus.com/investors/share-price-and-information.html)
‘’ Dividend taxation
As of January 1, 2007, based on Dutch tax law, all dividend distributions, independent of the origin/home country of the shareholder, are subject to a 15% dividend withholding tax. For more information please consult a professional tax advisor. See also the most recent Registration Document (Chapter 3 General Description of the company and its Share Capital) in our Annual Reports section.’’
Honestly, I was always under impression that stock exchange is not relevant for taxing, as the security behind had source of payout from specific country.
Ie Canadian companies listed on NYSE, US folks still pay witholding tax to Canada.
Thus maybe the reason for this is how our stocks are held at pooled account and legal entity representing is causing that taxation was done different then one would expect.
But anyway I have not done any research on this subject beyond what was discussed by T212 in the Total SA topic.
I would understand this as Source of payment is French company thus 28%, so Airbus is Dutch, 15%. If logic is correct even if bought on Paris exchange it should be 15% withhold.
So you have to look at source country, the problem only comes when the witholding of source country exceeds the taxation treaty tax, Ie Germany and France come to mind.
Thanks for the link @Vedran. It’s a very complex issue trying to work out who takes what from your investment. Surely T212 should be able to come up with some clarity on this for customers especially for countries where shares are bought often. They get paid the dividends so the they should be able to give us a table of what you lose on your dividends depending on which country the shares are bought from. @David, could you look into this or give some clarification please?