Tax optimisation for Japanese ETF

Taxes
1

I think this is a great topic with relevant information. I am therefore starting a new thread to make this valuable information more easily accessible for future references.
Fortsetzung der Diskussion von Tax optimisation for ETF investing [2024]:

Foreign stocks listed for trading in Japan which issue dividends will have the cash dividend allocation subject to an increased withholding tax rate. The tax will vary based on the domicile of the stock issuing the dividend; however in general the withholding rate will be the highest withholding rate applicable and will not incorporate a reduction based on prevailing tax treaties.

Tax optimisation for ETF investing [2024]
2

Thanks for creating the new thread!

So summarizing from the previous thread:

  • The tax on dividends for Japanese stocks / ETFs from the Japanese side should be 10% for Swiss residents as per the tax treaty
  • However, the WHT tax applied is 15.315%
  • Applying for the reduced tax in future dividend payments should be done by the payer (I assume the broker) to the Japanese tax office, it cannot be done directly. The same applies to get back the overpaid 5.315%
  • IB seems not to allow these steps. Other brokers to be confirmed.
  • The 10% of the treaty can be compensated in the DA1 on the Swiss tax declaration, but the overpaid 5.315% gets lost
3

Got the same conclusion, incl. the message from IB you quoted in the other thread.
Back to start, a deja vu for me :neutral_face:

I understand it’s either the custodian of the ETF, or the custodian of your broker that’s the registered unit holder. Checked the English fund documents out of curiosity, but didn’t get me any further.