I ve received today a message that the company declared a .08 monthly dividend per share and that an amount is transferred to my account. Yet AGNC declared .12 dividend. Why this big difference ? Is it because of taxation ? In other platforms the same company’s div is taxed only 10% ( in line with double taxation agreement between the US and my country)
I too have been paid dividends from AGNC.
There is the fx conversion rates to take into consideration which recently favours the GBP due to the dollar becoming recently weaker. Also for any UK investor we are taxed 15% with holding tax by Uncle Sam.
It is 33% difference, from $.08 to $0.12 , without taking into consideration the fx conversion. That’s what shocked me. I usually get taxed 10% in US stock divs.
That price does include the fx rate as it was 0.12 div... less 15% tax .0018 (2 cents)… less fx conversion and its rounded down to £0.08 payable.
I got the same issue with Revolut in the beggining, I read in fora that you might get taxed with a high US tax rate and you got to contact accounting offices to get back the difference between that rate and the rate that is applicable depending on bilateral double taxation agreements. It was shorted out at a later stage and in Revolut I get taxed only 10% with Revolut anymore, so my tax there for AGNC monthly div is only $0.012 per share monthly
Are you not a UK resident? If so tax is 15% and its taken before its given to 212 to put into your trading account. If you are European then they may have a different tax % pending what country you are from. This should explain a possible higher US tax % you mentioned and if you are using Resolut I presume your changing your foreign currency in another currency to prevent fx rate charge/change rate.
I am not a UK resident, it puzzles me the different taxation of the same stock across different platforms.
Google the US tax % for your country and whether the US hold any further % on top until you claim it back at the end of the current tax year via your local/national tax office.
Thank you very much !
I would grab all the official links about taxation treaty of your country with US and reach out to t212 support via in app email.
I had similar issue for few Canadian companies, my country has taxation treaty with Canada but not USA.
Originally I was taxed 30%, after contacting t212 support via in app email, we sorted it out, got reimbursed for extra tax and all later payouts of Canadian companies had proper taxation…
thank you ! I am thinking to do so !