Why T212 is paying less dividend

Hi there community, I’m currently building my dividiend portfolio and I started with fractional shares, today I received one of those payments but I’m really concerned why there’s a difference with the actual dividend payout and the amount T212 paid, for example

In T212 the payment for AFL is 0.20 USD per share however the public information is that AFL declared 0.28 USD for this quarterly payment as you can see from dividend.com and Seekingalpha.com

This is not the only example I have I can provide more if necessary, but I’d like to know why there’s a difference as exact payment is crucial for dividend portfolios.

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Could it be down to withholding tax? :thinking:

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thats bcs you need to pay dividend tax to USA for USA companies.

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I’m an international user, not a UK or US citizen. How much are these taxes? (already opened a support tickets BTW but this forum is faster :grin:)

Looks like 30% for you unfortunately. Just have to check your Local taxes to see if you can get this withholding tax down

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If your country doesnt not have a double treaty taxation agreement, the taxation of US dividends to non-residents is 30%.

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witholding tax is 30% but check if your country of residence for tax purposes (nationality does not matter) has “double taxation agreements” with USA. If they do, you can claim some or all the tax you paid for it from your government (while you are paying your taxes in the country you reside)

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This seems to crop up semi-regularly. Perhaps the dividend alert could be amended to read something along the lines of: X distributed an ordinary dividend of $X after withholding tax (X%).

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They’re going to make it much more informative soon

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For residing in Germany, taxes here on dividends are top 26.5% something like this.
I think USA is 22%?

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15% for Irish residents just FYI for whoever is reading this.

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What’s the situation with receiving dividends from US companies to us here in the UK?

15% withholding tax. Trading 212 automatically fill in the W8-BEN for you when you buy your first US stock, and I think you just have to click a button to renew it every 3 years or something. Nothing really to worry about

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@cavanhagan is correct, just to add if it is not in an ISA/SIPP you should declare it on your self assessment to not pay double tax on it, assuming your dividend income is greater than 2000 annually.

Also it is 100% tax free in SIPP, not even a single cent of withholding tax! :heart:

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Wait what? You don’t pay withholding tax in a SIPP?

depends on the Double taxing agreement as usual but for most countries including USA you get paid the full gross amount.

Who covers the cost? Do USA not charge it, does Government pay the 15%, or the employer? Confusing

https://www.gov.uk/hmrc-internal-manuals/double-taxation-relief/dt19867a#:~:text=The%20treaty%20allows%20both%20the,gross%20amount%20of%20the%20dividend.&text=Who%20will%20be%20entitled%20to,%E2%80%9Czero%E2%80%9D)%20on%20dividends%3F

UK tax exempt pension schemes will also be entitled to zero, provided that the dividends in question are not derived from the carrying on of a business, directly or indirectly, by the pension scheme and that more than 50% of the beneficiaries, members or participants of the scheme are individuals who are residents of either the UK or the US (Article 10(3)(b) and Article 23(2)(e)).

In summary therefore, in order to obtain zero a person must be a UK resident, must satisfy the conditions at Article 10(3)(a) or (b), must satisfy one of the relevant tests in the limitation on benefits article and must satisfy all the other specified conditions for obtaining the benefit.

In USA - UK case, USA does not charge UK and UK does not charge USA its a bilateral agreement. SIPP has nothing to do with employers. you can(and should) open a SIPP yourself.

another awesome thing about SIPP is, if you invest

Basic tax rate is immediately matched by government, and if you are in higher tax band you can claim that portion with your self assessment at the end of the year.

To clarify
if you invest £80 into your sipp today, government will contribute £20 immediately (by immediately i mean it takes 4-5 weeks to arrive) and at the end of the year you can fill self-assessment form to get a further £20.

Kali. What is your understanding of a T212 ISA account? Are USA dividends taxed or not? I don’t so far declare them on my tax return here in the UK!
Please