RetireJapan

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!

TokyoWart wrote: ↑Fri Mar 12, 2021 10:12 am... 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. ...

TokyoWart wrote: ↑Fri Mar 12, 2021 10:12 am

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 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.

TokyoWart wrote: ↑Fri Mar 12, 2021 10:12 am 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.

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.