I wonder if someone could please clarify just one thing for me since I'm not a tax expert (I am a computer programmer). I'm thinking of buying two ETFs as an investment in the new year. I did a background research in the forum and found a lot of information on taxation etc. which I understand much better now, including the 8 years deemed disposal tax, exit tax etc. I was however unable to find any information in relation to the taxation of the dividends with the accumulating ETFs. So for example... I do understand that with the distributing ETFs I need to declare and pay the tax on the dividends every year, (dividend amount - withheld tax) and 41% tax on the gains made by the fund (if any) when I sell.
With the accumulating ETFs, I don't have to declare and pay anything on the dividends, since the dividends will be reinvested automatically in the ETF itself and I will just pay the 41% exit tax on the overall profits when I sell the ETFs (or after 8 years which will not be my case anyway, as I plan for a short term investment two-three years max). What happens in this case with the taxes on the dividends withheld at source ? Can they be deducted when the fund is sold or will they be forfeit ? Is there always a tax withheld at source when the dividends are paid or rolled over with the ETFs ?
Seamus
With the accumulating ETFs, I don't have to declare and pay anything on the dividends, since the dividends will be reinvested automatically in the ETF itself and I will just pay the 41% exit tax on the overall profits when I sell the ETFs (or after 8 years which will not be my case anyway, as I plan for a short term investment two-three years max). What happens in this case with the taxes on the dividends withheld at source ? Can they be deducted when the fund is sold or will they be forfeit ? Is there always a tax withheld at source when the dividends are paid or rolled over with the ETFs ?
Seamus