Tax on dividends for accumulating ETFs

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

Have you checked here and/or used the search facility?

If the ETF does not distribute any dividends, then all income and taxes paid or withheld are ignored and not of any concern.

If the ETF distributes dividends, then you pay 41% on the gross dividend

The fact that the companies held by the ETF pay dividends and taxes can be withheld, or not, is a concern for the ETF and the taxman. It does not concern the investors holding shares in the ETF

Hi thanks JPD for the reply. It's the answer that I was looking for. I spent half the night last night looking for this information after spending most of the day yesterday trying to understand how the ETF taxation works. I only traded directly in U.S. shares so far with a U.S. broker and was really clear cut: pay the tax on the dividends yearly (minus the 15% withheld on source), pay the CGT after selling the shares (minus the 1270€ free sum). I could not understand how it worked for the tax on the dividends on accumulating ETFs. Thanks for making it clear