Degiro, ETF's, Tax, and Dividends

Ed110

Hi,

So I've recently started investing via Degiro and I have several questions.


Dividends - I have shares in Apple, Microsoft, Kraft Heinz etc. from NASDAQ so they're in USD and when I get sent dividends the withholding tax comes off of 15%. . . I also have shares in euro in VUSA S&P500 via Euronext Amsterdam and noticed that the dividends paid to me do not have the withholding tax, it's the full amount. . . So does this mean I should have the European equivalent for Kraft Heinz et al.? Example: instead of NASDAQ should I buy it via XETRA or Amsterdam? Will this give the full dividend? I'm aware of other tax obligations I just mean is the withholding tax purely because it's in different currencies?


ETF's - I started investing initially because I wanted to follow just the S&P500 (and am doing so via VUSA IE00B3XXRP09) but have really got into it so have bought several individual companies, generally Blue Chip.

So should I pick a different ETF because a lot of the companies I am buying are in the S&P500 just in small percentages? eg. I have shares in 4 of the top 10 holdings of the S&P500. . . I notice that the MSCI World etf is also US heavy. Is this Overlap?

Also VUSA is distributing dividends but I am coming to the realisation that what I need is Accumulating is this correct? That will mean I can avail of deemed disposal and pay the tax on that alone after 8 years? Need guidance on that one.



Also as a PAYE worker is it Form 12 I need to fill out when accounting for dividends for tax at the end of the year? And how does one pay, by Cheque? Online? My tax is always taken care of because I work Public Sector so I don't have experience with the necessary forms.


Thanks for any info, I probably have a lot more questions but can't think of them right now.


Ed

Calahonda52

Ed110 wrote: »

....

Also as a PAYE worker is it Form 12 I need to fill out when accounting for dividends for tax at the end of the year? And how does one pay, by Cheque? Online? My tax is always taken care of because I work Public Sector so I don't have experience with the necessary forms.

Ed

WELCOME TO BOARDS.
Don't know what your expectations are re getting free advice here.

You certainly stated with a good gob full, with the explicit promise of even more.

However my observation is: as a PS, you don't have to make a tax return: great perk, if its true.

relax carry on

Calahonda52 wrote: »

However my observation is: as a PS, you don't have to make a tax return: great perk, if its true.

That's not in anyway true. There's no exemption for public service.

OP, it's time for a specialist accountant if you've taken on those various investments. To be honest, that should have been done before you started to explore all the tax implications of your investments.

Ed110

Just to clarify I wasn't suggesting at any point an exemption. I meant my employer takes care of the tax paperwork, I just pay it.

Anyway I've found the relevant answers elsewhere so thanks anyway. No specialised accountant needed.

Geuze

Ed110 wrote: »

Also as a PAYE worker is it Form 12 I need to fill out when accounting for dividends for tax at the end of the year? And how does one pay, by Cheque? Online? My tax is always taken care of because I work Public Sector so I don't have experience with the necessary forms.

Ed

Note that this statement is false.

Working as a public servant is not relevant in terms of your tax credits, SRCOP, etc.

All workers should check that their tax credits and SRCOP is correct.

Anybody with medical expenses, or other income to declare, submits a Form 12.

There is not a special situation or arrangement for the public service.

wiggle16

Calahonda52 wrote: »

However my observation is: as a PS, you don't have to make a tax return: great perk, if its true.

I think Calahonda was being sarcastic but it may have gotten a little lost.

Relax Carry On is spot on here. You really should have looked into the tax side of this before getting your fingers into so many pies, especially if you thought that a solution to this was a Form 12!

The answers to your questions lie with a professional tax advisor, not the internet. This is way too complicated to be second guessing if you don't know what your obligations are and to whom. You might say you don't need one... but I would at least check if I were you.

MarioLuigi

Unfortunately Ed as wiggles16 has said your situation is complex and anyone who has the knowledge to advise you correctly won't do it for free. You're asking about both taxation and ETF/mutual fund investing, in my experience it's rare to find someone who has sufficient knowledge of both. You may want to talk to a stockbroker and tax adviser separately, but you definitely need professional advice.

B13

Ed110 wrote: »

Just to clarify I wasn't suggesting at any point an exemption. I meant my employer takes care of the tax paperwork, I just pay it.

Anyway I've found the relevant answers elsewhere so thanks anyway. No specialised accountant needed.

Hello Ed! Could you share what you've learned? I'm in the exactly same situation actually. This blog post has clarified a lot for me, perhaps will help you too:
www (dot) informeddecisions (dot) ie/blog42/

Geuze

Ed110 wrote: »

Hi,

Also as a PAYE worker is it Form 12 I need to fill out when accounting for dividends for tax at the end of the year? And how does one pay, by Cheque? Online? My tax is always taken care of because I work Public Sector so I don't have experience with the necessary forms.


Ed

Note that your status as a PS worker is not relevant when it comes to tax returns.

Tens of thousands of public servants complete tax returns every year, I know several of them.