Tuesday, May 10, 2011

Withholding taxes

income gains (dividend) = 1.2 million EUR
capital gains = 2.0 million EUR

withholding tax = 15%

Follow the standard approach with respect to withholdings.


Total amount of withholding taxes the fund will reclaim is:
0.15 * 1.2 = 0.18 million EUR

The standard approach is that withholding is applied to the dividend income only.

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