Tax on dividend Trading212 ISA Vs Freetrade GIA

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1

Hi

I got Accenture dividend and in trading212 ISA account it’s deducted 25% tax but not in freetrade GIA. why?

Note: Same ticker and market

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2

VERY MUCH GUESSING HERE BUT…
I’d assume Trading212 is correct as Irish incorporated (which ACN is - despite that feeling strange) should withhold at 25%

Freetrade are either wrong OR your trade was outstanding/unsettled at the point of dividend record date and Freetrade “inherited” the Counterparty to the trades Dividend WHT rate… which is a strange series of events but DOES happen in back-office processing land !!! It’s not technically correct but brokers are operationally forced to pay you the entire monies recieved by-way of dividend claim recived otherwise they’d either be a debtor/creditor to a foreign Tax Revenue with no easy way to hand over the de-minimus amount of cash owed… so strangely they lump the problem on the client…

OR Freetrade are actually recliaming Irish DWT on behalf of non-Irish clients… which is nice… or you can file it yourself : https://www.revenue.ie/en/companies-and-charities/documents/dwt/dwt-claim-for-refund.pdf with a form not dis-similar to that

Again GUESSING as I don’t work for either Company but have spent 25 years in investment platform operations…and some times know sometimes… other times I know nothing and should be ignored :face_with_peeking_eye:

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3

Hey, @smartinvestment123 - welcome to the Community :wave:

Accenture is a company based in Ireland, and the ordinary tax rate is 25%. When it comes to dividends, we replicate the tax rate applied by our intermediary, and this case is no exception.

When it comes to the payment received by Freetrade, I’m unable to confirm what is the reason for them to treat the payment as tax-exempt. In this case, it will be best to contact them for further information.

4

The response is a bit vague / different to my understanding which is referenced in above.

Agree double check with FT on their side, but i suspect both sides are either incomplete or wrong.

I suspect:

  1. 212 will later reflect an additional distribution once the tax treaty relief is claimed.

  2. FT will amend the distribution / apply a tax charge at a later date.

I might be wrong on this so would query both in chat rather than community message board.

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