On dividends earned from a foreign ETF, are there foreign taxes withheld?

[Guest Em G]

I hold VEU and received a dividend payment. How can I tell if any foreign taxes were withheld?

Thanks!! 

[JamesIG]

Assuming you are referring to the VEU Vanguard FTSE All-World ex-US ETF traded on the NYSE ARCA exchange, you would be looking at 30% withholding tax, unless you have filled in a W8-Ben form (W8-Ben in MyIG) in which case you would only have 15% withheld.

I believe the latest Div on this ETF was 27th June which was 0.613. 

Please also remember for CFD's (and spread bets if you are in the UK), the adjustment is also calculated with the tax included, however if you are short you pay 100% of the divy.

[Guest Air7]

8 hours ago, JamesIG said:

Assuming you are referring to the VEU Vanguard FTSE All-World ex-US ETF traded on the NYSE ARCA exchange, you would be looking at 30% withholding tax, unless you have filled in a W8-Ben form (W8-Ben in MyIG) in which case you would only have 15% withheld.

Hi James,

Thanks for this. I understand you work for IG.

I have W8-Ben active and still get 30% withheld from US dividends instead of 15%. Your helpdesk has not been great help on this occasion. Please, could you kindly advise how to escalate this and have someone investigate this properly between IG and your broker (this is an ISA account). 

Many thanks

[JamesIG]

7 minutes ago, Air7 said:

Hi James,

Thanks for this. I understand you work for IG.

I have W8-Ben active and still get 30% withheld from US dividends instead of 15%. Your helpdesk has not been great help on this occasion. Please, could you kindly advise how to escalate this and have someone investigate this properly between IG and your broker (this is an ISA account). 

Many thanks

Hey -  I have had a look at your account and I can't see any recent dividends from US stock (within the last quarter at least). Also, because this is an account specific question I wouldn't be able to discuss this further on a public forum. Please drop me a private message with the details of your query (stock name, date of dividend etc) and I will investigate. 

[Guest Air7]

Just to conclude on the topics - James must be one of the stars at IG. Thanks a lot for clarification.

[Auchendryne]

Hi, I'm having the same problem with my US  BPT royalties. It looks as if I've had 30% withholding tax taken from my first royalty although I completed the WEN-8 in order to buy the stock. I calculated my royalty as £162.55  and less 15% [WT] would equate to £138.17 but was only paid £113.90 which clearly looks like 30%. Can someone help?