Investors living in The Netherlands

basically UK stocks don’t have a withholding tax, so there’s currently no issue, but since brexit and other politics have occurred between the UK, US and EU. there’s no telling if one may be added and what the rates are going to be and how the T212 UK/EU entities will be affected.

some users live in countries where the T212 registered location affects the paperwork they have to file each tax year, so moving from the UK to EU entity will have a noticable impact.

for the US, your country of residence is what matters. unfortunately as Croatia does not have a double taxation treaty with the US, you face the full 30% for US dividends. however, you should check if you can use that as a deduction towards your total taxation.

I apologize in advance if I am mistaken, but I am a bit confused on how my tax residence and T212 registered location affect the withholding tax.

If someone is from Croatia a country where there is no tax treaty with the USA a withholding tax of 30% will be applied. If someone is living in Netherlands and invests in Dutch companies, in theory there should not be a withholding tax, but since the receiver of the dividend is T212 located in the UK a withholding tax of 15% is applied.

So with the same logic, since the dividend is received by T212 from a USA listed company in theory only 15% withholding tax is applied, and then T212 redistributes the dividend to the shareholders from countries with no tax treaties with a withholding tax of 30% (as it should be since their countries do not have a tax treaty). What happens to the 15% of the dividend? Does T212 keep it for their benefit?

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That was exactly the point of my comment. If T212 owns my shares and dividend tax is paid based on where T212 is headquartered, the US would retain 15% of dividend tax given that T212 is headquartered in the UK.

The only thing I wasn’t sure about was whether the different rules apply to the US since we send them (not t212, but each client personally) a w8ben form stating tax residency, which we don’t do for other countries.

Hi everyone!

New around here :slight_smile: I just tried to deposit funds to trading 212 account from my ABN amro account and received a dutch error message which translates to “A transfer with a Dutch payment reference can only be made to Dutch accounts. do you want to process the transfer? Fill in the payment reference in the description”

Has anyone had the same issue? I added a 0 to the end of the payment reference and the transfer went through, but not sure if it will register on this side given I altered the payment reference. I only transferred 1 euro to test but wondering if the payment reference I was given just coincidentally is a common dutch payment reference?

Thanks in advance!

Hi, welcome,

I deposit money every week using an automated payment from my ASN bank account. Just deposit to the GB IBAN you will see in the app or site. Overthere you will see the reference number too. This is the same.

Hey guys,

I am new here. I have opened an account around September 2021 and I have invested 100 euros in 5 stocks that I have no intention of selling. I have a question regarding the Dutch taxation next month. When I am declaring my income, I have read that I have to also declare my assets in Box 3 as of the 1st of January as a date. I have 4 US stocks and 1 Dutch stock so do I have to mention that or pay higher tax because it is a foreign stock. Am I correct with the information I have?
Any information provided will be deeply appreciated.

Thank you!

Hi,

In box 3 anything below €50.000 isn’t taxed. This includes investments, savings minus debts. If you hold €100 in stocks, you aren’t taxed. You can subtract paid dividend tax though (if applicable).

Hi,

Thank you for the information. I haven’t received any dividends yet, so this might be irrelevant. However, under Box 3, I still have to declare those 100 euros right, even though they won’t be taxed.
Thank you!

Yes. Also money in savings account or crypto.

Hi Chantal,

How did you report your paid dividend tax last year? Last year I simply didn’t do it because I wasn’t sure how to calculate it correctly (some dividends were taxed at different tax rates and most were in USD instead of EUR). It just wasn’t worth the hassle for those few bucks, but this year it definitely will be.

Thanks in advance for your reply!

Kind regards,
Nick

Didn’t have dividends last year. I started to focus on dividend stocks in 2021 :slight_smile:

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Well, you actually go through the hassle of checking how much was paid, in Euro, for all of them.

I get the CSV of the history from T212, extract the first two characters of the ISIN (IE, US, GB,…), use this to sum all dividend tax by unique country code + currency.

Then i convert them to euro, and voilà, euro dividend tax paid for each country :joy:

On other news, no Box 3 this year, while it’s been declared illegal according to European laws, and will get reworked.
Expect Capital Gain to be taxed, but at least this year nada.

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How do you convert it to euro? Since for me the exchange rate at the point of time the dividend was paid shows “Not available”…

Either you take the exchange rate for 1st of January / 31 of December;
Or you use outside resource, such as Yahoo Finance, or TradingView, to check the closing rate of every date.

You can go for the History tab for each dividend payment, and complete your Excel with the FX rate.

Also there, you will find the Tax withholding rate and other useful info.

With that, you can calculate your taxes paid in Euros, Gross & Net Dividend.

(If you like data, this also gives a better picture of your dividends, e.g. per company, per country, etc.)

It’s a bit work-intensive activity…

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Ah I see, that’s indeed possible. Thanks! As I just checked, some taxation rates are not equal to 15%, is this the same for you? For example my Dutch shares of Unilever and the dividends I received for holding them are 0% taxed (?) for the latest 2 dividend payments, but at other times there is the 15% tax withheld (?). Is this due to being “officially British” as of late? And for Ahold Delhaize it is 13% for the latest received dividend (6 sept 2021) instead of 15%? Do you know how this works and why this is not 15%?

Do you have the ex dates for the specific events you are talking about. Dividends are a very ‘loose’ term for a return and there can be different elements to it(Return of Capital, capital gains, interest and income)… the investor relations portal of the company should help you with that and the different taxable elements.

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To be fair, that would be a non-issue with our current tax system.

They only care of how much dividend withholding tax you’ve been charged (in different countries), as this is a write-off on your income tax. We have no dividend tax, no capital gain.

But then again , this year we have no box 3 (asset/wealth tax) altogether as it was deemed illegal by the EU, and we’re waiting on a reworking of the system for next year.

As @Dougal1984 said, each “Dividend” has a different type of nature, Return of Capital, capital gains, interest, bonus, merger, split and ordinary, and each has a different tax treatment.

And the companies can pay the dividends split in different tranches, by type and by country of origin of the income.

As the official owner is T212, the tax treatment is the same as for a British fiscal resident.

I’m curious, how T212 Cyprus will be treated. Are the dividends of stocks/ITs/ETFs paid as Cyprus fiscal residents for EU investors onboarded in the T212 Cyprus entity? Could @Team212 clarify this?

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Hi everyone!
I’m trying to fill in my tax declaration for 2021 and it seems that this year, my Box 3 total assets exceed the limit of €62680*, so I think that I also need to declare my activities in T212.

I only own US regular stocks, not dividends. However, most comments are related to dividends, so I’m a bit confused. My question is about the following tabs:

  1. Withheld dutch dividend tax: This should be 0 since I do not trade in the dutch market, right?
  2. Has foreign tax been withheld? Do I need to select US there? And if yes, how do I find that amount, if it’s only for regular stocks?

*I saw some comments that for this year this limit would increase to €100k for a couple. However, the automated message on belastingdienst indicates that this limit is €62680. Do I miss something here?