Method of tracking share trades, P&L and CGT

[losttheplot]

CGT and Dividend Withholding tax are two different taxes and are treated separately. Degiro will compile an annual report that shows your loss and gains for the year and any dividend tax withheld

 

[NewEdition]

So if I sell.. I pay 15% witholding tax.. then another 33% CGT at the end of the year?
Is that correct?

 

[EmmDee]

So if I sell.. I pay 15% witholding tax.. then another 33% CGT at the end of the year?
Is that correct?

In Spain? No I don't think so. 15% withholding is on dividends only. Not sale proceeds.

The only place I can think of where there could be withheld tax on sales is the US if you don't provide the beneficial owner form - they have a sort of "emergency" tax on all cash receipts.

 

[garbanzo]

To the best of my knowledge, dividends are counted as income not a gain; so income tax in the form of the DWT is applicable not CGT. They get you every which way....

 

[EmmDee]

To the best of my knowledge, dividends are counted as income not a gain; so income tax in the form of the DWT is applicable not CGT. They get you every which way....

Dividends are income. They are paid less 15% withholding tax. You then need to declare the full dividend and the withholding tax deducted in your income tax. This means you will pay additional Irish income tax up to your marginal rate.

Proceeds from sale of shares are not income and you don't get hit with any tax at source. You do have to declare any profit on the sale in your tax return and you will pay capital gain tax on the profit (after the initial allowance)