After I consolidated my ETF holdings to Saxo in June, the first dividend from my ETF in London Stock Exchange was declared in my Saxo account in July. But wait, how come they were taxed at 20%? They were not taxed at all when I held the ETF in POEMS. After I have sent an email to Saxo, the withheld tax was refunded to me before the pay date in August.
Round Two
The second dividend was declared in October. Again, it was taxed at 20%! After a few emails to chase for the refund, it was credited into my Saxo account after the pay date.
Transfer Again?
The ETF pays dividend four times a year. It is going to be a pain if I need to email for tax refund for every dividend payout. And if Saxo decides not to refund withholding tax (e.g. change in custodian structure), it may be time to do another account transfer, sigh…
4 responses so far ↓
Mike // Sunday, 11 January 2009, 1:12 pm at 1:12 pm |
hi choozm,
just wondering have you ever tried to recover the 30% dividend withholding tax for VWO? thanks
choozm // Sunday, 11 January 2009, 2:48 pm at 2:48 pm |
Hi Mike,
I have not tried to recover the 30% dividend withholding tax for VWO because I have very little holding in VWO. If your ETF is in US-based broker, they should send you the Form 1042-S, and you should be able to use this form to claim the withholding tax.
Wilfred Ling // Sunday, 26 April 2009, 5:41 pm at 5:41 pm |
Choozm,
I don’t think you need to inform Saxo to pay you back the tax. For mine and my clients’ dividends at Saxo, the dividends are refunded after 1 to 2 months.
choozm // Sunday, 26 April 2009, 7:00 pm at 7:00 pm |
Hi Wilfred,
Thanks for the info! That will save me time.