Sentences with phrase «foreign withholding taxes»

They correctly point out that's not true: while there are two levels of foreign withholding tax with this structure, investors don't pay twice as much.

This structure can result in additional foreign withholding taxes on dividends.

Should we determine opportunities are available to return these earnings, we may be required to record tax expenses related to foreign withholding taxes in the second half of fiscal 2018.

It's also more tax - efficient since it holds developed markets stocks directly rather than via an underlying ETF, which results in lower foreign withholding taxes.

I can't stress enough that asset location decisions should be based primarily on income tax, not foreign withholding tax.

If you held this fund in an RRSP account, the international foreign withholding taxes of about 4 % would be lost.

Investors and advisors are often unaware of how foreign withholding taxes affect returns, and the reason is simple: they're damned complicated.

As always, you need to consider more than just foreign withholding taxes when making investment decisions.

I'm curious whether foreign withholding taxes apply to bonds (and bond funds).

The amount of foreign withholding tax payable depends on two important factors.

The remaining dividend income is subject to various foreign withholding tax rates, depending on the country of origin.

Trying to avoid a relatively small foreign withholding tax while ignoring Canadian income tax is penny wise and pound foolish.

The change was made specifically to reduce the impact of foreign withholding taxes.

There are some clear advantages to using US - listed ETFs in RRSPs, including reduced foreign withholding taxes.

One such improvement can help mitigate the drag from foreign withholding taxes levied on dividends paid from US and other international companies.

One thing to keep in mind is that RWO's financial statements will only include foreign withholding taxes levied from countries other than the US (since the ETF is US - domiciled).

For investors who use XAW, the drag caused by foreign withholding taxes is somewhat smaller, because not all of its stocks are held via U.S. - listed ETFs.

Although FIF Dividends are not taxed separately, foreign withholding tax deducted from FIF dividends is still available as a foreign tax credit.

To avoid foreign withholding taxes on ETFs, find a TSX - listed version with similar holdings (Andrew Rich / Getty Images)

Foreign withholding taxes also occur with mutual funds and ETFs listed on Canadian or U.S. exchanges, which is why this topic was featured in the ETF stream of a BMO Global Asset Management conference on ETFs and mutual funds that I participated in last week in Chicago.

Dividends from U.S. and international stocks are fully taxable as income and may be subject to additional foreign withholding taxes.

Based on the calculations we made in our recentwhite paper, I'd estimate foreign withholding taxes would add approximately 0.45 % to the cost of the fund if it's held in a registered account.

That's what we mean we when say foreign withholding taxes are «recoverable.»

You will pay foreign withholding taxes in a non-registered account, but you can claim an offsetting credit on your tax return.

While foreign withholding taxes will continue to apply to dividends paid on certain international equity securities included in the XEF Index, it is expected that the change in investment strategy implementation will reduce the overall amount of withholding taxes borne directly or indirectly by XEF.»

In other words, whether Julie avoids foreign withholding taxes altogether (as she's doing in her RRSP) or paying them upfront but later having them refunded (as in her non-registered account), the overall impact is the same.

You should also understand that when Canadian ETF providers report performance, they do so after subtracting foreign withholding taxes: in other words, they do not presume these taxes will be subsequently recovered.

Foreign securities inside the TFSA will be subject to foreign withholding tax based on the terms of the tax treaty Canada has with the other country.

VUN and XEF have the same foreign withholding tax implications whether they are held in a TFSA or RRSP account.

(Foreign withholding taxes do not apply to capital gains.)

However, we will still lose foreign withholding taxes on EAFE and EM funds.

For instance, when I receive dividends from a non-domestic company like PBA, taxes are withheld called foreign withholding tax.

Note, however, that the tax cost ratio can be distorted by differences in management fees and unrecoverable foreign withholding taxes.

I pay the reduced foreign withholding tax of 15 % on the ENB dividend and will recuperate it during my year - end tax filing.

By holding the US - listed ETFs directly, an additional cost savings of 0.52 % per year can be expected (this estimate includes the lower expense ratios of the US - listed ETFs, as well as the lower foreign withholding taxes levied — however, it does not include the costs of currency conversion, which can be substantial if not carefully implemented).

Back in the fall of 2012, I wrote a pair of blog posts about the impact of foreign withholding taxes in US and international equity funds.

If you mean that the 15 % foreign withholding taxes levied by the US on dividends paid from IEMG to XEC are generally recoverable in a taxable account, then that would be accurate — but you would still pay full tax on the dividends received (so you don't avoid taxes on dividends).

If you held this fund in a non-registered account, the international foreign withholding taxes of 4 % would be lost.

The following explains how foreign withholding taxes are applied in the TFSA (and the RRSP & RRIF).

To my knowledge no one has ever quantified the costs of foreign withholding tax in a comprehensive way — until now.

One of the common reactions to my earlier articles about foreign withholding taxes was to overestimate their significance.

In our newly revised white paper, Justin Bender and I explain the hidden cost of foreign withholding taxes on U.S. and international equity ETFs.

After taking into account the additional tax drag from foreign withholding taxes, the estimated cost of VXC increases to 0.66 % (from 0.27 %), while the estimated cost of XAW increases to 0.56 % (from 0.23 %).

Here are my posts for the past two weeks: Foreign Withholding Taxes on New Vanguard ETFs Measuring Returns in Different Currencies.

Lesser - known tax issues include: high coupon bonds in taxable accounts, tax harvesting to minimize taxable gains, and foreign withholding tax.

I've looked into British companies like UL and BT since there is no foreign withholding tax for US investors, but it's their irregular payments and currency fluctuations that annoys the heck out of me.