Quote:
Originally Posted by donkbluff
I am a fairly new investor and am currently in the process of establishing how much tax I need to pay in each country.
I am a tax resident of Lithuania, but invest on the Frankfurt Stock Exchange. I invest through the Interactive Brokers platform.
When I receive a dividend from a German company such as Allianz, tax is withheld.
However, when I receive a dividend from an ETF such as 'EXSD' (that's the code / ticker), it is stated that this dividend qualifies as being exempt from tax withholding.
Is the reason for this that the fund manager has already had taxed withheld on the dividends received from the individual companies, and I am thus not required to pay further taxes on the "dividend" received in Germany (the dividend thus amounts to an after-tax distribution)?
I am aware that I still pay taxes on this income in Lithuania, but my question purely relates to whether I need to pay any tax on this income in Germany once it has been deemed as "exempt from tax withholding".
Thank you kindly in advance.
Hello
Each country has a different taxation method as you know, you definitely should either read the articles that define the legal code regarding that
and/or contact the organism in Lithuania that monitors all Investment
Usually theres one organism for "Bank legal/protection" and another for "Finance+Investments" (in most € countries at least)
From a logic point of view you should not pay any tax in GER except waht they remove , but again , i strongly advise you to ask the organism and READ the legal info
You cannot imagine how important that is . Sometimes you have legal instruments to decrease tax in most countries and most people are unware of that.
As an example , im from the EU , oficcially i pay 28% on capital gains
however i can pay from anywhere from 0% up to 14% using LEGAL articles and fulfilling the requirements, many people are unaware of that
Gl