As the post title asks, I tried searching online and on this forum and I could not find a definitive answer to the question:
Given the option of reinvesting dividends on American ETFs in an overseas brokerage account, will this mean I do not have to declare those dividends in Japan? (as they will be capital gain tax at the time of sell) or that if I do have to declare it, will it not be taxed?
In the first place will the US not withhold dividend tax at source on those reinvested dividends?
Thanks for the help!
Do Reinvested dividends on overseas ETFs have to be declared?
Re: Do Reinvested dividends on overseas ETFs have to be declared?
I have several stocks and ETF's in my US brokerage accounts which I have set to automatically reinvest dividends. In all of those cases I still have to report the dividends and pay taxes to Japan and the fact that I chose to reinvest the dividends did not make any difference. I don't have any ETF's outside Japan that have the "invisible" dividend reinvestment that some Japanese mutual funds have where you never even know what the dividend amount was but it has been somehow been reinvested in the fund. If that is the kind of foreign fund you have I don't have any experience with it.kanpanela wrote: ↑Fri Mar 12, 2021 7:38 am As the post title asks, I tried searching online and on this forum and I could not find a definitive answer to the question:
Given the option of reinvesting dividends on American ETFs in an overseas brokerage account, will this mean I do not have to declare those dividends in Japan? (as they will be capital gain tax at the time of sell) or that if I do have to declare it, will it not be taxed?
In the first place will the US not withhold dividend tax at source on those reinvested dividends?
Thanks for the help!
-
- Sensei
- Posts: 1573
- Joined: Tue Aug 15, 2017 9:44 am
Re: Do Reinvested dividends on overseas ETFs have to be declared?
Trust me, said the fox to the rabbit.
Re: Do Reinvested dividends on overseas ETFs have to be declared?
Interesting. My fund currently is not set to reinvest dividends so I can not tell yet if it is the invisible kind.TokyoWart wrote: ↑Fri Mar 12, 2021 10:12 amI have several stocks and ETF's in my US brokerage accounts which I have set to automatically reinvest dividends. In all of those cases I still have to report the dividends and pay taxes to Japan and the fact that I chose to reinvest the dividends did not make any difference. I don't have any ETF's outside Japan that have the "invisible" dividend reinvestment that some Japanese mutual funds have where you never even know what the dividend amount was but it has been somehow been reinvested in the fund. If that is the kind of foreign fund you have I don't have any experience with it.kanpanela wrote: ↑Fri Mar 12, 2021 7:38 am As the post title asks, I tried searching online and on this forum and I could not find a definitive answer to the question:
Given the option of reinvesting dividends on American ETFs in an overseas brokerage account, will this mean I do not have to declare those dividends in Japan? (as they will be capital gain tax at the time of sell) or that if I do have to declare it, will it not be taxed?
In the first place will the US not withhold dividend tax at source on those reinvested dividends?
Thanks for the help!
I don't even need to report taxes yet as I don't have 5 years in Japan, but I was considering my option for the future.
It looks like I shouldn't bet on it.
Thanks!
- RetireJapan
- Site Admin
- Posts: 4732
- Joined: Wed Aug 02, 2017 6:57 am
- Location: Sendai
- Contact:
Re: Do Reinvested dividends on overseas ETFs have to be declared?
I think these are not really available in the US as the tax rules make them pointless. More common in Europe: https://www.justetf.com/uk/news/etf/dis ... ncome.html
You can often choose from two versions of a given fund: the distribution version and the accumulating version.
English teacher and writer. RetireJapan founder. Avid reader.
eMaxis Slim Shady
eMaxis Slim Shady
Re: Do Reinvested dividends on overseas ETFs have to be declared?
Thanks for the link. I guess "accumulating" is a better word for this than "invisible"I think these are not really available in the US as the tax rules make them pointless. More common in Europe: https://www.justetf.com/uk/news/etf/dis ... ncome.html
You can often choose from two versions of a given fund: the distribution version and the accumulating version.