Dividends taxes

đź“Š Investing
1

How much percentage do you pay in taxes for each dividend payment??

2

Someone please it is urgent

3

Depends where the company is domiciled and if you are investing inside or outside an ISA. You might want to be more detailed in your question if you want a decent answer.

3 Likes
4

I invest as an individual to different us companies that pays me dividends

5

As a UK tax resident? In what tax wrapper?

Making some assumptions:

You’re UK resident you’ve filled a W8BEN… you’'ll likely have your 30% DWT reduced to 15% regardless of wrapper.

If you’ve not filled a W8 … 30% … except those “US” companies that are actually incorporated elsewhere…ie Schlumberger in the Dutch East Indies (or somewhere) that pay dividends fee of tax (0%).

Asumming you’re ina GIA and you’re UK resident and you’re not n an ISA… then there is a Double Taxation Agreement to utilise when filing your tax return…

If you’re resident elsewhere… who knows.

2 Likes
6

Thank you very much for your answers

7

When creating a new trading212 account is the W8-BEN form created and automatically populated with our details at set up? Or as a new customer do I need to fill out and email it?

1 Like
8

@Lee Link to W8BEN form

and manual

Screenshot (65)
Screenshot (65)1653Ă—792 63.3 KB

1 Like
9

Thank you for that!! Really appreciated.

1 Like
10

I was also told that when you place your first trade of a US stock you will be prompted to complete this information in app.

11

Hi Lee, the w8 form is generated automatically during the account creation process. We’ve introduced this optimisation with a recent update in Q4 2019.

If your account is created prior that update, you will be prompted to generate it automatically when you make your first trade a US instrument.

2 Likes
12

What about if you’re an EU resident that has invested in Irish-domiciled ETFs listed on the London Stock Exchange or XETRA? For example, in my country there are double-taxation treaties with the UK and Germany. I’m aware I must pay taxes on dividends at the rate of 19% in my country, but must I also report earnings in the UK or Germany (based on the reporting country for that ETF) and have the tax office in my country offset the difference? I’m a bit confused.

Cheers!

1 Like
13

Yea, I need to know that too…