*Please consult a professional if you’re confused or not sure about anything when filling out a W-8BEN-E form
Do you own a US domiciled ETF or share? I own 2. VTS and VEU.
If an investment derives its income from the US, it has to pay tax to Uncle Sam. But What happens when I get the dividend from my US ETF or share? The company has already paid tax to the US and now I’m expected to pay full tax on the dividend?
Oh Hell Naw!
This is the purpose of the W-8BEN-E form. It stops double taxation so you don’t pay tax twice in two countries. You need to fill this form out for every ETF (or investment) that is domiciled in the US. If you don’t fill it out, you will get tax twice!
Here is a video of me recently filling out my W-8BEN-E form. I had to fill it out again because I switched my broker account from Commsec to Selfwealth and created a new HIN.
SIDENOTE
I’m sometimes asked why I own these two instead of just buying VGS (or VDHG but that will be covered in an upcoming post).
In a nutshell, I go with VTS+VEU because it offers:
– Lower management fees
– Greater diversification
– Exposure to emerging markets
– Unhedged against the Australia dollar (I think the AUD is high at the moment)
Don’t be put off investments because you need to fill out a very simple form every 3 years! I understand that it’s a little bit of extra work but seriously, we are trying to reach financial independence here! What’s a couple hour extra filling out a form and doing a little more come tax time for a superior investment.
The FIRE community is constantly recommending putting in a little bit of extra work and taking things to the extreme where others won’t, to enjoy a life other can’t!
It’s really great to see you continuously make original, valuable content in the FI Aus space. This one and the ETF buy demonstration are such great links to just point new investors at. I’m also very interested to hear your reasoning on VDHG, as I’ve been mulling over that one for a while now. Cheers
Thank you 🙂
The VDHG is coming up next!
End of day no major difference. We all still winning not paying active managers 1+%.
A porfolio of VAS and VGS would do just fine – even if not as diversified and slightly more management fee.
VDHG is fine too, no stress easy one etf investment but could be replicated cheaper with ETFs then 0.27 management fee.
Define major?
If you had $1m invested (which I plan to have within the next 5 years).
VTS + VEU + VAS at 30% 30% 40% weighted respectively would work out to be $1,010 in management fees each year.
VAS + VGS at 40% 60% would work out to be $1,640.
That’s $630 buck saved in management fees each year for potentially the next 50-60 years (I hope).
But it’s not as simple as just $630 * 50 to be $31,500 saved.
We have to work out how much those extra fees cost us in terms of lost investment potential.
If we invest that extra $630 each year for 50 years and assume a real rate of return of 5% (factoring in inflation), we come to an extra $139,114.
So how much emphasis do you put on the extra admin and rebalancing work required for VTS, VEU and VAS?
If you’re comfortable to pay roughly $140K over 50 for less management and stress then so be it.
VDHG works out to be $373,178!
But I would consider that amount of money being left on the table as major.
Really great points. Maybe I jumped on the vdhg bandwagon to quick.Though I admit maybe I’m just a lazy set and forgot investor.
Nothing wrong with set and forget Basil.
Just make sure you know how much more you’re paying for that privilege and if you’re still cool with it then awesome.
Hi, I’m a new investor and just learning about domiciled effect on tax. I’m in australia and have the US version of VTI (total US) and VT (total world). Is the W8Ben form sufficient to avoid the double taxation or should I move over to the Australian versions?
Thanks heaps for covering this. I have been looking into this too.
What are your thoughts on estate tax implications though?
It’s not going to affect me Craig.
It may affect my children who will inherit the estate.
But I haven’t got to that part yet. I’m not sure that leaving my children a fortune will be beneficial for them.
I will rob them the opportunity of building wealth and reaching FI for themselves. Something that I have discovered being incredibly rewarding and the sense of accomplishment that comes with it cannot be overstated.
I need to do some research when it comes to what to leave your children (can’t say I’ve thought too much about it).
Maybe I will leave them some wealth, maybe I will leave them a lot of wealth. Maybe I plan to spend my entire fortune and educate them on money so they can have the pleasure of building their wealth from scratch just as my parents did for me.
I’ll cross that bridge when I get to it.
so Aussie Firebug, if we already submitted the form for VTS + VEU (W-8BEN-E FORM) , in our Australian Tax return, do we still need to declare dividend income for VTS + VEU ? if yes, could you explain in detail what section in our tax return we need to report it ? di we need to report it gross dividend ( before deduction from US tax , or after US tax deduction) . Many thanks for your reply.
Thanks so much for posting this. I am with commsec pershing international trading account and I have been taxed 30% ‘NON-RESIDENT ALIEN TAX’ off my dividend even though I already gave commsec my W-8BEN-E form. Am I supposed to fill one of these out each time I buy shares from a new company or supply commsec with the form just once? Thanks for your help with this.
You need to fill one out for each security. Once you have filled it out you can keep buying new shares without having to lodge every time.
Very useful post, thanks for sharing. It took my partner and I ages to read through and fill out this form! We’re individual investors for VEU and VTS through Vanguard, would you mind sharing why you’ve chosen to buy through a trust?
To distribute income the most tax efficient way.
Also, asset protection is a bonus.
On the form, what is the difference between a simple trust and a complex trust?
Interesting, let me investigate as I’m with Interactive Brokers, so trade directly in USD there… Wonder how it plays. I’ll do some research
Do you only need to fill out once?
You need to resubmit every 3-4 years apparently. I have not had to yet
Do they notify you when its due again or just default to higher tax if not done?
Hey mate, sorry very new here to the FIRE movement and investing in general but i was listening to your podcast interviewing Andrew from self wealth; in it it says they only currently handle brokerage for on the ASX. How if you transfer all you holdings to Self wealth will you be able to continue to trade in the international vanguard shares? Cheers Nathan
I don’t have any international shares directly.
I own two funds (VTS and VEU) that are managed by Vanguard who look after the allocations that those two ETFs hold. Within those ETFs are the international shares.
The ETFs that I own are listed on the Australia stock exchange (ASX).
Does that make sense?
Yes it does now, thanks for clearing that up 👍
Hi, just wondering if there is any way of knowing if your W-8BEN has been recieved and accepted by Computershare? I emailed mine for my VTS and VEU shares to that email address provided but never got any confirmation or reply. Should it be obvious under a section of my Computershare account when my forms have been processed? I want to make sure so I don’t get stung come dividend time. Thanks.
Check this out mate
https://www.youtube.com/watch?v=j7wjubpKzW8&t=1s
Hi – wondering what your thoughts are on the new upcoming BetaShares ASX:A200 ETF coming soon. This one will have a cost (0.07%) that is half of what VAS currently is (0.14%). I wonder if we’ll see Vanguard follow suit?
Also I realised recently that when you own more than $US60,000 each of VTS and VEU (which are domiciled in the United States) there is a “death tax” of about 30% thrown at them should the holder suddenly drop dead. Not sure I like this idea given that my cash or at least part of it would be inherited by my son. Imagine 30% evaporating on the spot!
Hi Scott,
I may have something in the pipeline for the A200 news. Watch this space.
The estate tax does not affect me since I hold my shares in a trust.
If I was exposed to this, however. I don’t really care. If my children were so fortunate to receive any kind of inheritance from me, I don’t mind Uncle Sam taking a cut.
I’m not sure I want to leave my kids a big inheritance anyway. But that’s another story.
Not sure if I’m late to the party but found this explanation of the W8 form and thought it worthwhile. Below is a cut and paste from another site:
You should fill out a w8 ben if you are trading those two (VTS & VEU) as it reduces your tax to the states, but it doesn’t really matter.
Foreign Investors in the US pay 0% capital gains tax and 30% income tax. If you filled out the w8 ben that 30% is reduced to 15%.
But because you live in Australia you marginal tax rate is higher than both those numbers probably so it will reduce.
eg You get a $1 dividend. The US withholds 30% (no w8 ben) you are left with 70 cents. However in Australia your marginal tax rate is 32.5 cents (cause you earn between $37k and $80k). Under the US DTA you have already paid 30 cents to the US so you only have to pay 2.5 cents to the governement.
If you had filled out your w8 ben then the US would have withheld 15 cents. you know owe the ATO 17.5 cents.
Both ways you have paid the same tax. Filling out the w8 ben is important if your marginal tax rate is lower than 30% (retiree, student, unemployed,part time) otherwise same outcome. Filling it out is also better because more of your tax paid ends up at the ATO where you will see a benefit from it.
Can you also give share a list of Vanguard EFTs which require W8 form? I currently hold VDHG + VGAD + VAE…
Ps. love the content. Why don’t they teach this financial literacy in schools!!
>>> The US withholds 30% (no w8 ben) you are left with 70 cents. However in Australia your marginal tax rate is 32.5 cents (cause you earn between $37k and $80k). Under the US DTA you have already paid 30 cents to the US so you only have to pay 2.5 cents to the government.
I don’t think it works like that at all. You will pay 30% in the US and whatever arrives here will be fully taxed at your marginal rate. It does matter.
Great site ,thank you ,Will be buying some Vanguard ETF’s over the next few months ,which ETf’s does it apply to .please give example regards ric
For me it applies to VTS and VEU.
Vanguard will notify you if you buy one of their ETFs that requires the W-8BEN form.
Hi Aussie Firebug,
IG Markets keeps withholding 30% from my VTS and VEU distributions even though I have submitted a W-8BEN form accepted by them. Yesterday they told me this.
‘As it’s an a US ETF that trades in AU then CitiBank retains the 30%. No matter of you have a W8Ben form. You will need to claim the taxes at the end of the financial year with your accountant. This is done to all clients and it’s the way the ETF trades.’
Can you tell me if IG Markets isn’t giving me the right information? I half suspect the 30% withholding across the board might be due to IG Markets holding all shares in omnibus co-mingled custody accounts (clause 13 of their Share Trading Agreement quoted below).
‘(13) Your Instruments will be registered in the same name as those of other clients (pooled together with other clients’ Instruments in an omnibus co-mingled custody account, like with like). This means that Instruments will not necessarily be immediately identifiable by way of separate certificates or personal reference within the securities depositary, clearing or settlement system. If we or our third party nominee were to become insolvent there may be delays in identifying individual assets, and possibly an increased risk of loss if there should be a shortfall because additional time will be needed to identify the assets held for specific clients. In addition, in the event of an unreconciled shortfall caused by the default of a custodian, you may share proportionately in that shortfall.’
Hmmmmm….. I don’t like the sound of this. I don’t know exactly how ING work but I only pay 15% on VTS and VEU dividends.
Your question actually inspired me to quickly create a video explaining how to make sure your W-8BEN-E form is actually being applied. Becuase there wasn’t any content out there explaining it (that I could find)
Check this out https://youtu.be/j7wjubpKzW8
Can you check this (if you haven’t already)? If you are still being tax at 30%…I’m not sure where you go from there. Maybe move to SelfWealth? That who I use and haven’t had any issues.
Hope this helps mate
Hi Aussie Firebug,
I decided to dig deeper and press IG Markets (not ING. LOL) again after seeing you confirm 15% tax withheld. Here is what I got out of the same IG Markets representative today. Brackets are mine to aid understanding.
‘The dividends we (IG Markets) posted on your account are the dividends we (IG Markets) get from CITI as they are our (IG Markets’) broker. So they are telling me we are looking to get the 15% tax, but at the moment CITI is holding 30%. So at the moment there is nothing we (IG Markets) can do about it (30% tax withholding from VTS and VEU regardless of W-8BEN form submission). Because we (IG Markets) don’t have a date for this (withholding the correct 15% tax after clients submit W-8BEN). So we (IG Markets) can’t tell you a date (for withholding the correct 15% tax after clients submit W-8BEN) or disclaim on the (IG Markets) web site. I wish I could tell you a date (for withholding the correct 15% tax after clients submit W-8BEN). We (IG Markets) are talking to them (CITI) to fix this (charging the incorrect 30% tax despite W-8BEN) as obviously is not convenient for our (IG Markets) clients.’
The outcome of my investigation is pretty annoying. There is so much vital information simply not made available by IG Markets. For at least two reasons, I think I need to eventually move my portfolio over to CommSec or another responsible broker which is CHESS sponsored and able to issue me a Holder Identification Number (HIN).
1) Correct tax withholding rate.
2) Better security as my shares are identifiably mine because I would have my own HIN.
That SUCKS!
Is IG (d’oh on the ING before lol) not CHESS sponsored?
You need that CHESS sponsorship dude! I have used both Commsec and SelfWealth and can vouch for both. SelfWealth is the cheaper option though.
Do you need to fill in this form if you buy VGS or VGAD instead?
Nope. Both of those funds do not require a W-8BEN-E form
Kind of you to take the time to create the video. Just to confirm, if at any time an ETF or any holding traded on the ASX requires an W-8BEN-E form, you will be notified?
Yes. You will be sent documents stating you need to fill out the W-8BEN-E form by the fund manager (in this case Vanguard).
Hi.
Just wondering if it is possible to claim the tax back from IRS if I forgot to fill out w8 form?
Thank you so much for your help.
The IRS is always going to take the same amount. It’s the ATO that needs to adjust their takings. If you’ve been charged more then you should have for previous years, it’s possible that you’re able to claim it back through a tax return. Speak to a professional accountant about this though as I’m not 100% sure.
Really appreciate your inputs. Will definitely consult with an account
Hi Ruben,
Don’t know the IRS side of the story re possibility of clawing back excess tax withheld (not recommended), but you can claim the full amount docked by IRS in your ATO tax return (recommended).
In practice, it’s too much trouble to fix things after the fact because clawing back the excess tax withheld means you need to deal with two authorities (US and AU) + potentially two tax agents (US and AU). The net result is likely to be the same to you.
If for whatever reason, you short changed yourself (foreign tax credit claim) in your ATO return, you can amend a return. That’s still far easier than dealing with IRS and an optional US tax agent (search + expense).
Keep it simple. Don’t try to juggle too many things.
Thank you so much for your reply. Tom.
Seems that dealing with IRS can be a big pain in the ass.
Will consult with an account to figure out how to claim it back via ATO.
Thank you
Maybe you don’t need a tax agent just yet. Try this first.
The lowdown on ATO amendments.
Generally 2-year limit
Potentially possible with a phone call (worth the try)
Otherwise can do on My Gov.
‘If you’ve made a mistake on an income tax return you’ve already lodged, you can request an amendment to your income tax assessment. (If you think we’ve made a mistake processing your return, you should phone us to see if we can sort it out without the need for an amendment.)
The law sets time limits for amending your tax assessment.
For individuals and small businesses the time limit is generally two years.
Online at myGovExternal Link (after logging in and selecting ATO services, select: Tax > Lodgments > Income tax > History). Regardless of how you lodged your original tax return, you can request an amendment of your assessment online.’
https://www.ato.gov.au/general/correct-a-mistake-or-amend-a-return/correct-(amend)-an-income-tax-return/
Hey Firebug love your blog and pod. I was wondering about this as well, if I purchased VEU through CMC markets, would I receive a W-8BEN, I purchased them a few months ago and haven’t received anything yet
Not sure Pat. Maybe flick them an email? You can always get the form from computer shares.com
I think IVV is transitioning from being domiciled in the U.S to Australia and is expected to be completed later this year….It’s the Blackrock’s equivalent of VTS with the same low management fee of 0.04%…
Given this, what’s your thoughts on replacing the 30% VTS with 30% IVV as I don’t see any difference between the two, and it would simplify things i.e. not needing to fill out the W-8BEN-E form.
I haven’t researched IVV but I’m loving that MER 👌. If it’s the same as VTS then yeah, I wouldn’t see a reason to buy vts over it. The w-8ben form is not hard but if you don’t have to fill one out that’s a bonus!
The only thing I would consider is what is Black rocks ownership structure like? Because the way Vanguard is structured (shareholders are essentially the investors and will always make the best decisions to benefit the investors) is a important feature.
IVV and VTS both charge 0.04% MER. IVV is S&P500 but VTS is US total market (3,654 companies). Given a choice, diversification is better. So VTS still wins.
I am completing this form. Our family trust is a discretionary trust. Is that what yours is? Only asking this to try and determine if its a complex or simple trust. I noticed you said complex so just checking.
Our trust is discretionary too
@Aussie Firebug, few question… I would really appreciate your time and answers.
2.While you have your assets under a discretionary trust, doesn’t that make your tax return and other fees nearly 1k or more per year? So you might be saving on the MER but the fees are coming from the structure.
1. I really like the idea of the structure for asset protection and tax minimization, is your a discretionry trust with a corporate trustee?
3. Lastly, once you pay the 15% in the USA… Do you still need to pay further tax here in oz in any dividends or sale of units you?
Thank you very much for the content you share on your blog… I am currently holding VDHG but thinking of following your portfolio stack.
Sorry messed up the numbers for the questions.
to clarify question 2. I was told to create a family trust with a corporate trustee. The corporate trustee being a company requires a nearly $300 fee to ASIC every year plus the tax return for that structure is about $500-700. Are you guys doing something different with your structure? Thanks!
That sounds about right. But you don’t need to pay someone each year to do the return. It’s very straightforward actually. Requires a little bit of bookkeeping but so does a personal return.
Hi Mate,
1. Yes, it is with a corporate trustee. This is to ensure asset protection.
2. Currently costing me about $600 a year… The ability for the trust to distribute at the most tax efficient rate will more than make up for this cost in future years. Once the portfolio is throwing out a decent amount ($50k+) the tax savings will be evident and all future distributions will be saving on tax. This is why I set it up that way.
3. Yes of course. It’s just that you won’t get taxed twice (US and Aus). So you will be paying the same amount of tax as if the fund was domiciled in Australia.
Hope that helps
Thank you for getting back to me. BlackRock now has IVV which is S&P 500 and IJR US small cap, low fees and both are domicile here in OZ since this week. This is so great for us here in Australia. I haven’t found a VEU equivalent domicile here in oz yet, but at least we now have some by blackrock.
Also it seems that the current state tax laws in the USA only really applies if you have more than 5.5 Million in assets there. So anything between >60k to 5.5 Million will require your family to do some paperwork and the state tax shouldn’t apply.
“http://www.ustaxes.com.au/credentials/u-s-australia-estate-tax-treaty/
” The treaty is still applicable for U.S. estate tax purposes, even though Australia no longer has an estate tax.
Without the treaty, Australians who are not “U.S. persons” would pay a U.S. estate tax on any U.S. assets (including shares in U.S. companies) valued at more than $60,000 USD. By virtue of the treaty, Article IV, Australians are allowed a portion of the Unified Credit against their U.S. estate in the ratio of that etate to their worldwide estate.
For an Australian with a worldwide estate of less than $5.45m in 2016, this will usually mean that no U.S. estate tax is payable. However, a form 706NA will have to be filed for estates with a gross value of more than $60,000, and a Federal Transfer Certificate obtained in order to transfer shares worth more than $60,000 from the deceased’s name. A medallion signature guarantee will also be required; there is only one company in Australia that offers this service.
The devil is in the details – the list of assets included in the calculation of the gross estate for U.S. estate tax purposes may surprise Australians, as it includes joint tenancy property, life insurance proceeds, and assets gifted within three years before death.”
Aussie Firebug – while we’re on the topic of ETFs such as VTS, Where do you enter this onto myTax? Do you do this yourself and add it to the managed fund section?
I went through an account because I had to seek professional advice with the trust return and my properties. But when I’m 100% shares I will be doing it myself. Looking where the accountant put the income though…
In section 8 Partnerships and trusts
Non-primary production
Share of net income from trusts, less capital gains, foreign income, and
franked distributions
Type R $DOLLAR AMOUNT [P]
I will be doing a video about this when I switch to completing a return myself. It’s pretty straight forward though.
Is this still relevant for VTS? I recently purchased a parcel and have gone to the website http://www.computershare.com.au/easyupdate/vts but do not have an option to select a tax form? Am I missing something here?
By the way fantastic blog and podcast – keep up the good work!
Yes.
You still need to fill one out. What do you mean you don’t have an option to select the tax form?
My VTS and VEU letters say that for individuals and joint individuals you need to go to https://au.digital.computershare.com/W8Ben — this looks like an online wizard.
For other entities a form should have been enclosed, otherwise you need to download the form from the Investor Centre.
Hey mate,
Up to this point and I still love ya blog. Just another suggestion, I know you already have a back to top button, but it would be good if you could add a back to bottom of the post button.
I’m on my mobile browsing this massive post, but when I reach the bottom of all the comments, it takes me forever to find the button for the next post 😉
Keep up the good work
Ohh, nice suggestion mate. I’ll see what I can do 😉
I had the same issue. Never thought to suggest a fix. This is a great idea.
– Unhedged against the Australia dollar (I think the AUD is high at the moment)
Can you elaborate a bit more on this point please? Currently, the AUD is low, would it still make sense to buy unhedged or is it better to go with hedged?
Thanks!
Well, do you think the AUD is going to go up in the future? If it does, unhedged investments (against the USD) will drop in value. Works the other way around too though. I’m not a huge fan of hedging because there’s usually higher management fees and it doesn’t make much of a difference in the long run.
Also is it ok if I fill out the form after I have received the dividend?
Yes
Hi Aussie Firebug.
Although the management fees are less in investing VTS+VEU compared to VGS, wouldn’t I be paying double in trading fees compared to if I was only investing in one ETF?
I would like to invest on a monthly basis so I’m worried that this extra fee would cost me a lot more in the long run.
Thanks your advice.
You’re correct.
But that’s assuming that you’re trading twice a month. We only buy once a month because I don’t feel the need to rebalance on top of that amount.
But if you’re looking at getting the splits as close to their desired amounts as often as possible, going the VGS options probably makes more sense.
Cheers
Hi A.F, Thanks for your brilliant blog!
1. Do you mean Estate Tax in the USA only applies to $60k per share holding? Or to the aggregate total of all USA shares that we own? (We have a few different USA shares in our super fund, which might reach $60k – so just checking).
2. We have 3 USA share holdings where I am struggling to see who their share registries are in order to send them the W8BENE forms (being 3M, BRK/B and Novartis). I assume its their share registries where we need to send this form? I tried calling Anz Share Investing who are our trading platform but no one is answering.
3. Double-checking also… did you say there is zero capital gains tax for our USA shares?
4. Lastly, can anyone suggest a sensational accountant or I should say, a good accountant? Ours is too busy to adequately manage our account and only just told us we’re paying double-tax after 4 years investing in USA stocks. I will persevere, but if some one can make a good recommendation too, that’d be great.
Hello AF,
Great content with rich explanation of each ETF and the relevant pros and cons. I currently hold VAS and looking to invest in VTI just ‘cuz of the lowest MER. I understand from above readings that you pay 15% to IRS for any dividend monies that you make outta your investment in VTI, but do you still have to declare/pay the tax here again to ATO if you are an individual (not a Trust). Excuse my ignorance, how about the capital gains ..say 10 yrs down the line you decided to sell the VTI and you make decent profit then what are the tax implications with IRS and ATO i.e. How much tax will you be required to pay?
Love your contributions mate!
Thanks in advance.
Hey mate,
Love the content you provide and the knowledge you drop !
I have recently started dropping money into VTS/VEU.
When you were with Commsec did you use there specific form or Vanguards form for the W8BEN ?
Cheers,
James.
No worries mate.
I downloaded it from computershare.com. There should be a section somewhere in there that allows you to download the form. I might have a video about it on my Youtube channel from memory
When you do retire, what do you do with vts and veu – sell? Im confused with how this works? they both pay low yields and what are the tax implications when and if thats what you have to do?
We don’t have plans to sell when we retire. VTS and VEU are in the portfolio for international exposure. No reason to sell them unless we need to. As long as we keep up the W-8BEN-E forms we won’t be paying any more tax than normal because of the agreement.
I have been investing in VTI for about 2 years now. Are VTI and VTS basically the same? What are the pros/cons if I keep investing in VTI instead of starting to invest in VTS?
Thanks for your help
Dear Sir,
I am very new and not sure who to ask..
Have ben trading through overseas broker.
Finalu i am withdrawing some of my options and i have completed W-8BEN form,
My agent is telling me that according to regulations i have to deposit from my Australian account tax as per Anti many laundering Laws. Am i being scammed?
Your comment is greatly appreciated
Bob
Hi there,
Loving what your doing, Keep it up!
Was just wondering however, do we need to submit the form before payment of the first dividend to avoid the double taxation? Or just before the 30/6 which is the end of the financial year.
Thank you!
You can do it ASAP. If you’ve paid too much tax on some dividends, I’m pretty sure that you’re able to claim that loss going forward so you cans till get your money back (not 100% sure though so confirm with a professional)
Hi all, I have shares in both VTS and VEU, but don’t remember receiving the W-8-BEN form, possibly because I moved address. Doesn’t anyone know how I can follow up on this?
Just got to the end of the video and it answers this, so nevermind!
Hi Aussie Firebug
Thanks for the great blog. Its given me much information! I’m new to this FIRE movement and after some reading have started to put what I can into VEU and VTS. I have filled out the W8Ben form and sent it to Computershare. I’m so confused though, as the dividend statement shows a withholding of 30% tax on the dividend payment. is this right? From some comments above, it states some investors have only a 15% withholding rate? Have also given the statements to my accountant and im not completely sure hes done the right thing either. any advice on tax returns for US domiciled ETFs? I’m super confused!!!
Check out this video I made years ago Laula.
I’m pretty sure it should answer your question.
Cheers
How do you go doing your taxes re: VTS/VEU as you don’t get an annual tax statement (unlike VAS/VGS)?
I use Sharesight and send the reports to my accountant Baz. My returns is a tad more complex than the average though because we invest through a trust
Hello, thank you for the video. I am currently completing the form. I looked at CommSec and it had the following instructions:
https://www.commsec.com.au/content/dam/EN/PDFs/Product/International/W8-Instructions-Trusts.PDF
I am asking about Section “Part ||| Claim of Tax Treat Benefits”, CommSec suggest ticking “Other” and writing “Article 16 (2)(g) – ownership/base erosion test”.
This is different to the boxed you ticked – do you happen to know the difference? Many thanks.
Thanks for the video, really helpful!!
On this form, what is the difference between a simple and complex trust?
are they taxed in different ways?