Withholding tax continued

We were having some good conversation on the topic withholding tax - help section of the forum when i noticed solution has been applied to the thread so maybe we can continue discussion on the investing section.

Reading through various withholding tax bracket people from all over the world have been paying - the highest being up to 35%

Is it still worth investing in sole purpose dividend stocks that incur withholding tax and at what % withholding tax would people be put off as the risks that comes from investing now outweighs the returns on capital invested?

Difficult question to answer as users would be from different tax jurisdictions with different treaty rates, similarly also having different goals.

Personally I am a long term investor so I look for total return rather than focus on pure growth/income plays.

I think the highest tax rate on income I’ve paid to date is about 15%, but not enough of a dent on the total return to be of concern.

Similarly there are some good income stocks that I see as undervalued on a short to medium term so can provide both growth and good income even after taxes.


As Dougal says, it probably depends on your tax juridiction.

In my case, I can offset most of the dividend withholding taxes paid against my income tax, virtually removing a good chunk of what’s been withheld on my net total income level; but for the purpose of reinvesting for example, it doesn’t affect the fact that I received a lower cashflow, and hence can only afford lower reinvestment.

Haha no such thing as offsetting for me tho 15% is a good deal!

However am a bit unsure why i paid 26.375% on Daimler AG dividend - quite an unusual percentage tbh