Accumulating IE ETF (SMH) results in 0 on ICTAX - Better switch to US version?

Taxes
1

Hi, I will start with my 2023 tax soon and want to be prepared, since it is the first year with ETFs/Stocks.

I already read posts here and I basically understand that US ETFs are better (tax wise) but I anyway have an IE ETF in my portfolio so somehow I need to solve that topic. On ictax (IE00BMC38736) it is listed, but doesn’t give a result for 2023. I have 261 Shares and that’s what I entered.

Any idea how I can find out the “virtual” dividend amount they will use to tax me?

I thought about switching to the US version, but I would still need to solve that for the period I have them and I actually like the IE version because of the costs per share and that it is capped by 10% per company.

2

I think the data is not yet provided by Van Eck to the ICTAX team. You don’t need to worry or switch ETF just because of this specific issue.

Most likely you need to wait for sometime and then the data would be there. You can also send an email to Ictax to ask for expected dates. I checked for 2022 information and it seems the data was made available on 23 June 2023. So I would say by end of June, you should expect the data to be available

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3

Thanks a lot for checking, that helps a lot and I didn’t think about that. I also checked now for 2022 and the 261 shares would generate 51 CHF gross profit which would be taxed as my income if I understood it correctly, right?
I can live with that especially because I have the 2 mentioned benefits and knowing that I won’t get the 15% witholding tax back.

4

How would one do that? Through this generic contact form, or is there some way to contact the ICTax team directly?

5

The dividend yield of SMH ETF in US for 2023 was approx 0.6% . The IE version of it would have even lower yield due to “unrecoverable” withholding tax.

And yes , this will become part of your taxable income.

With such low dividend yield, the difference between US domicile and IE domicile is very small. I would suggest not to worry about switching ETFs.

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6

I contacted them using generic form for some other topic. I don’t think there is specific email to write to. They forward internally depending on the need

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7

Thanks a lot, then I will stay with it, more advantages than disadvantages.

8

Just to be clear. What does “cost per share” mean? You mean that IE version is a cheaper stock to buy?

What would be advantage of that ?

9

I know, it is not really an advantage for most. Sometimes I have some money left and then I just buy 5 IE SMH or so . I probably could buy fractions of US SMH at IB, but this way I somehow like it better. Biggest plus for me are the 10% capped companies, at least I think it takes some risk out of it. Especially the 23% Nvidia sounds too much for me.

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10

Yesterday early evening I sent them an e-mail asking about the missing taxable value for FWRA. This morning I already got a reply, they published the value now.

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