Hello,
In Finland we are required to specify if we hold any assets.
Q1) As far as I know, based on the terms and conditions of Trading 212, we do not own these shares (not on our name, and these are lent to others and kept by custodians), is this right?
Q2) if we do not own the shares , then do we declare the divident as payment income?
Q3) if we had closed orders but did not withdraw the money, do we need to declare the profit shown in Trading212 as income?
Thank you!
I am sure the tax authorities in Finland will think you own the shares, (it is similar to the way you own the money you deposit in a bank account, and which is also lent out to others. You cannot point your finger at any specific banknotes that you “own”, but tax authorities certainly consider a bank balance be your asset).
Dividends are real dividends to which you have beneficial ownership. This is clear from the fact that the rate of US withholding tax that is taken depends on your tax residency, not that of Trading 212.
Tax on profit is realised whenever a position is sold. It does not matter if the proceeds are or are not withdrawn.
Hmm. In another post I read that devidend tax was applied based on T212 residency:
@David , can you please clarify if shares are owned by us or not?
To know what I have to declare, if I am considered shareholder of those companies or not.
Thank you!
Your shares are held in custody with Interactive Brokers, our Intermediary, and you are a beneficial holder of the shares. You can contact your tax authorities to receive more information about the implication of this regarding the taxation of your return.
I was speaking of US withholding tax. People in this forum have reported seeing different rates of withholding depending on the treaty rate with their country and the US. Some people see 15% deducted, others 30%. This speaks to me of the fact that the dividends can be paid specific to your circumstances. But it seems this is not always possible, as with Dutch withholding tax mentioned in another post.
Thank you for the reply. I remember I read here somewhere, especially when the lending of shares kicked in, that we do not own those shares and also that is why we would not be able to vote (if the shares allow this). But I see now:
I wonder if people here ever received or were asked how to vote by these intermediaries…