Tax withholding for ETFs domiciled in France and Germany?

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mursculio
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Joined: Wed Jan 13, 2021 2:55 am

Tax withholding for ETFs domiciled in France and Germany?

Post by mursculio »

Hi all!

I’m doing some research on European ETFs for a course I'm teaching. Here are some tricky questions I have not been able to resolve. I figured someone on this forum would have insight!

Question 1 - Everyone knows that Irish ETFs pay 15% tax on US source dividends and Luxembourg ETFs pay 30%. But what about German and French ETFs which invest in the US?

I know there are not many, but there are some I am looking at, and I have not been able to find a clear answer to this question.

For German ETFs the answer seems to depend on whether the fund is established as an “InvAG” (15%) or “KAG” (30%).

For France I have no idea – help?

Question 2 - What about 2nd-level taxation for German and French ETFs? If I am a non-resident receiving distributions from a German or French ETF, will tax be withheld on behalf of Germany and France, assuming no tax treaty is applied?

Any pointers or good source materials would be much appreciated. Thanks very much!
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