I would like that someone in T212 would be so kind that explain to me why if iâm suposed to get 70% of the dividend paid by EPD iâm getting the complete 100% and what are the tax implications of this fact. Thanks.
Others know better, but I think EPD is a MLP. What you have received is classed as return of capital, not a dividend and so does not have US withholding tax. @Vedran knows about this I believe.
Frankly havenât found any EU source to confirm what/how should be taxed.
But from Canadian PoV, MLP are heavily taxed.
But for Canadian investors, the tax treatment is quite different. Canadian investors in an MLP with U.S. assets are generally considered to be engaged in a business in the United States. The result is that the MLP will withhold 39.6 per cent tax on any distributions paid to non-resident, non-U.S. citizens
Source:
US & Canada have tax treaty btw.
So I am still confused on how in reality EU investors should be taxed against US MLPs. On top there is K1 filling which is US taxation, currently also no implications to EU investor, but who knows if you decide to visit US one day.
With that said, I have found few gaps in T212 taxation in past, so I wouldnât rule out that this 0% taxation is a gap as well.
Then EPD has already withhold the 39% in their distribution? Thatâs whatâs really bugging me, because is a lot legally safer to be taxed in excess than owing money to the us government.
My accountant has asked me about stating dividend witholding tax, dividend reports must contain this information, otherwise I will have to pay double taxes. This is very inportant.
I have had the same questions about taxations of dividends from MLP especially from EPD. I have not got any answer from T212 team. As far as I know in EU we are obliged to report taxes from didvedends onlly to authorities in our country of residence. If there is no withholding tax than wholle amount of tax is paid in country of residence. If wittholding tax have been deducted than we have to paid the difference in our country. If that is not correct than pleas someone to correct me.
In Slovenia we have to paid 27.5% tax on dividends if there was no withholding tax. If withholding tax have been deducted tax authorities here recognise 15% so we have to pay the difference 12.5%. Also Slovenia has agreements with USA and other coutries about avodiding double taxation. So in case of regular USA companies there is a wittholding tax of 15% and in Slo we have to paid 12.5%. In case of MLP as far as I know we have got 100% of dividend or as they called it return of capital. So as I understand it we have to pay 27.5% of tax only here in Slovenia.
But I would like also to here explanation on that issue from T212 team.
from what I was aware, return of capital is treated as capital gains, not a dividend so the taxation rule would change. this explains to me why people would receive 100% of the amount even if revolut claimed it was applied.
As far as I know taxation policy in Slovenia return of capital from shares or dividends from shares are taxed at the same way. There is no distinction or there is not mentioned expression return of capital, there is onlly taxation on dividends from stocks.
fair enough, the distinction would occur at source so normally the company that is issuing a RoC wouldnât withhold âdividend taxâ because itâs not paid as a dividend. I usually refer to source as I donât know the taxation rules for individual countries besides the UK to be able to comment on them.
This is the case for us in Portugal. We need to identify the tax number and tax residence from all parties involved.
We also have to declare capital gains (difference between purchase and sale prices)
Any update? I think this is the most important feature that every broker has to have.
I have to prove what taxes have been paid from my dividends, my accountant is chasing me.
It was intended as a joke but fyi, IRS is also the personal/individual income tax in Portugal.
Not sure what sort of information exchange there is (if any) between the Uk tax authoraties and the portuguese IRS