Actually EPD is an MLP, which makes me curious why we get full Distribution (Return of Capital).
As per many articles it should be taxed maxed witholding tax for non US residents.
Maybe something to do with IB custodian account.
But here are details…
Wonder what @Team212 has to say.
Did you have the same situation with dividends from similar MLP company?
Is IB actualy Interactive Brokers LLC? What is the connection between IB and trading212?
However I have read some similar articles about MLP but I am not sure what is true at the end. From trading212 I have got mail about witholding taxes on dividends and stocks for exactly Enterprise Products Partners L.P. (EPD) and it was written that according W8-Ben witholding tax is 15% for US-based dividends.
I was expecting withholding tax on dividends of 15% because this W-8BEN document, but now I can see that witholding tax on dividends was actualy 0 and I am confused about that.
I can explain that only according the mutual agreement between USA nad SLO wher is written that all amount of taxes on dividends can be payed also only in SLO.
It would be nice to hear coment and some explanation about that subject from Trading212 team.
Did you have the same situation with dividends or (Return of Capital) from similar MLP company? Did you get also gross amount of Distribution (Return of Capital)?
Yes. I own EPD shares also MPLX, received full distribution, unlike with other USA corporate dividends where I received 30% taxed.
Thank you for answer. Do you have any explanation about it? Do you have to pay any taxes on Distribution (Return of Capital) to USA authorities at the end of the year or you have to pay tax only in your country of residence? As far as I know as non resident of USA all amount of dividends have to be reported only to authorities in our resident country. I supose that is the same with Distribution (Return of Capital) on shares? Do you have any information about it?
Thank you for answer. Do you have any explanation about it? Do you have to pay any taxes on Distribution (Return of Capital) to USA authorities at the end of the year or you have to pay tax only in your country of residence? As far as I know as non resident of USA all amount of dividends have to be reported only to authorities in our resident country. I supose that is the same with Distribution (Return of Capital) on shares? Do you have any information about it?
I got gross amount for HEP, another MLP.
Hopefully T212 team will provide some clarity.
If you’re in the UK and investing in the ETF via an ISA you won’t pay any tax on your dividend or capital gains.
If you have the VUSA and it says its distribution yield is 5% that has already taken into account the witholding tax from its holdings overseas (someone correct me if i’m wrong?).
Once its paid to you in your ISA you pay no further tax on it.
This would be a really nice feature, that some other brokers have it. For example when I receive the dividend, it puts also the value of witholding tax for the dividends received. And also I can see the % tax for each dividend in the monthly statement. This would definitely be helpful for anual taxation declaration.
Hi. I have got recently dividend from EPD (MLP company). This time it was as ordinary dividend taxed 15% and not as return of capital.
On 30.07.2020 Enterprise Products Partners LP(EPD) distributed an ordinary dividend of $0.38 per share. Gross amount of dividend was $0.445 per share.
Does it mean that from now from all USA MLP companies we will receive ordinary dividends with 15% tax deduction? Can you confirm this so we do not have to worry about taxation and that we can purchase more stock from another MLP companies too.
No, MLPs in general still distribute return of capital without any withholding tax. Today I received Energy Transfer (ET) distribution this way.
Can someone explain what is going on with dividends or return of capital from MLP and how taxation is conducted? If you have got gross amount of return of capital without any withholding tax do you have to report that also to USA tax authorities as non USA resident?
I am in no position to advice about taxes and have no detailed information about the topic, but I don’t think that you should report anything to US authorities, you only pay withholding tax and it is handled before the distribution.
@George Does T212 have any further information on the distributions from MLPs? Like others, I received payment from EPD is May classed as Return of Capital with no withholding tax. This month, it was classed as Ordinary dividend with 15% withholding tax. I have contacted support who said that the withholding tax should also have been paid in May!
Like others, I have other MLPs, such as MPLX HEP MMP and PSXP who all paid this month as Return of Capital with no withholding tax. Can someone please explain what is going on?
@David Any further information from T212 to clarify this? Seems to be quite a lot of confusion about distributions from US MLPs and withholding tax (or lack of it). Any explantion why EPD was a Return of Capital in May with no withholding tax, but in August was Ordinary dividend with withholding tax taken? And also why other MLPs seemed to all be Return of Capital in August with no withholding tax?
I’ve been trying to get an answer from support about the change in the EPD distribution from Return of Capital (no withholding tax) in May to and Ordinary dividend (withholding tax applied) in August. They have said that the distribution in May was in error and should have had withholding tax! Still no idea why this changed and why it doesn’t fit other MLPs.
This makes no sense as other MLPs, such as ET MPLX MMP HEP PSXP, have all paid as Return of Capital in both May and August with no withholding tax.
As I understand it (please someone correct me if I am wrong) a Return of Capital is not classified as a dividend (according to the IRS) and is therefore not subject to withholding tax.
Thanks a lot! Much appreciated.
You were right, Enterprise Products Partners dividend which was distributed in August should’ve been non-taxable. We’ve just made a correction & amendment was made to all of the affected clients. Could you confirm that?
Yes, I have just received the difference in amount of 0.07USD per share for EPD.
I have a question about taxation dividends or return of capital from USA based MLP companies like Enterprise Products Partners. Do we have to report and pay any tax on dividends or return of capital from MLP to USA authorities or we have to report and pay taxes only in our country of residence like with dividends from other companies?
Also, I have noticed that company International Consolidated Airlines Group, S.A. (IAG.L) paid dividend on the 2nd July but I did not got any. Did they pay dividend on that date?