Optimization of portfolio (withholding taxes)

I asked for a table comparing numbers from a screenshot from your 2021 analysis (linked above from @Abs_max ) with the GTP numbers.

Country Region Weight PI Weight GTP PI US GTP US PI IE GTP IE
United States US 60.1 58.0 0.0 0.0 15.0 15.0
Japan Japan 5.8 6.2 10.0 10.0 15.0 15.0
China (mainland) Emerging markets 4.0 4.0 10.0 10.0 10.0 10.0
United Kingdom Developed Europe 3.7 3.8 0.0 0.0 0.0 0.0
Canada Canada 2.9 3.2 15.0 15.0 25.0 25.0
France Developed Europe 2.9 3.1 15.0 15.0 3.0 15.0
Switzerland Developed Europe 2.6 2.8 17.5 15.0 35.0 15.0
Germany Developed Europe 2.4 2.6 12.0 15.0 12.8 15.0
Australia Asia-Pacific ex Japan 1.8 2.1 0.0 0.0 0.0 15.0
Taiwan Emerging markets 1.7 1.8 20.0 21.0 20.0 21.0
South Korea Emerging markets 1.5 1.6 17.6 22.0 22.0 22.0
India Emerging markets 1.3 1.4 7.5 25.0 5.0 10.0
Netherlands Developed Europe 1.3 1.1 15.0 15.0 13.0 15.0
Sweden Developed Europe 1.0 0.9 8.4 15.0 3.0 15.0
Hong Kong Asia-Pacific ex Japan 0.8 0.8 0.0 0.0 0.0 0.0
Denmark Developed Europe 0.7 0.7 15.0 15.0 15.0 15.0
Spain Developed Europe 0.6 0.6 15.0 15.0 15.0 15.0
Italy Developed Europe 0.6 0.5 15.0 15.0 16.0 15.0
Brazil Emerging markets 0.5 0.4 8.2 15.0 13.0 15.0

Let’s ignore the weighting, might be timing or index used and it’s close enough. Could you comment e.g. the 3% for France with IE-domicile, or 17.5% for Switzerland with US domicile? I did find the 15% in the DTA, but haven’t read the fine-print.

Here’s the cheeky GTP answer, not mine :wink:

France

  • France-US DTA: Typically, the withholding tax on dividends paid from France to the US is 15%【source: US-France Tax Treaty】.
  • France-Ireland DTA: Typically, the withholding tax on dividends paid from France to Ireland is 15%【source: Ireland-France Tax Treaty】.

The 3% figure for PI IE seems unusual and incorrect.

The GTP rates seem to be more accurate based on the double tax agreements and authoritative sources. The discrepancies in the PI rates might be due to incorrect assumptions or outdated information.

1 Like