Dividends and foreign tax

Clauric

This has probably been asked before, but I can't seem to find the answer at the moment.

I made about €16k last year in dividends from US, UK, IE, and NL companies. For the ones from Ireland, no tax was charged on them so I assume that I need to add them all up, and then work out the income tax, as well as PRSI and USC on them. That part seems ok.

However, I have couple of other scenarios that I came across:

* I have GBP denominated stocks. Most of the dividends seem to have the total dividend, and the taxes that were applicable to them. However, the total dividend and the dividend less taxes seem to be the same.
E.g. 4250 shares with a div of £0.04 per share, equals £170. Taxes on form say $18.89. total payment says £170.
How do I treat these taxes, and total dividends?

* Other GBP denominated stocks have no tax against them. I assume that I add these to the Irish ones (at the conversion rate on div-date).

* The US stocks have 2 taxes on each. Unlike the UK dividends, these have a starting dividend amount, 2 taxes taken off the dividend, and a final dividend amount.
E.g. 680 shares with a div of $0.124, equals $84.32. Taxes are $12.65 and $16.86, for a total payment of $54.81.
How do I treat the taxes, and total dividends?

* As the US above, except for dividends from the NL.

Any help would be greatly appreciated.

subpar

You pay double tax on the dividend earnings of all UK Shares

Clauric

subpar wrote: »

You pay double tax on the dividend earnings of all UK Shares

Could you elaborate a bit on that?

subpar

Up to some years ago there was an agreement in place between the UK and RoI TAX Authorities that tax charged on dividends earned in one jurisdiction could be netted off tax liable for residents domiciled in the other jurisdiction. That agreement no longer applies so

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for example an RoI tax resident who owns UK SHARES will have tax deducted at source on the dividend earnings by the UK Revenue in addition you are then liable for income tax of 33% for these net earnings to the Irish Revenue. A tax free allowance of 1200 per single person applies to these earnings. Tax payers are liable to declare these earnings ( in addition to any paye data) on their annual tax return forms.

Clauric

subpar wrote: »

Up to some years ago there was an agreement in place between the UK and RoI TAX Authorities that tax charged on dividends earned in one jurisdiction could be netted off tax liable for residents domiciled in the other jurisdiction. That agreement no longer applies so

---

for example an RoI tax resident who owns UK SHARES will have tax deducted at source on the dividend earnings by the UK Revenue in addition you are then liable for capital gains tax of 33% for these net earnings to the Irish Revenue. A tax free allowance of 1200 per single person applies to these earnings. Tax payers are liable to declare these earnings ( in addition to any paye data) on their annual tax return forms.

My understanding the dividends were not subject to CGT, but were instead subject to income tax. Can you clarify that?

Ciaran

Clauric wrote: »

For the ones from Ireland, no tax was charged on them

Are you sure? If you're resident in Ireland, dividend withholding tax of 20% would normally be deducted.

You pay tax on the net amount of the UK dividends. You pay tax on the gross amount of the US dividends and get credit for 15% tax withheld (that's the $12.65 it seems). The other $16.86 may be reclaimable from the US revenue. The Dutch ones seem to be the same.

Clauric

Ciaran wrote: »

Are you sure? If you're resident in Ireland, dividend withholding tax of 20% would normally be deducted.

You pay tax on the net amount of the UK dividends. You pay tax on the gross amount of the US dividends and get credit for 15% tax withheld (that's the $12.65 it seems). The other $16.86 may be reclaimable from the US revenue. The Dutch ones seem to be the same.

The Dutch ones seem to be the same - is that the same as the US?

Martin07

Are vodafone dividends subject to paye tax or is tax deducted by vodafone before payment to shareholders?