I do understand that the 15% penalty on the dividend of US stock from Irish ETF, that is not recoverable is a loss of efficiency in the investment. I however want to make clear that there is some trade off here.
If your marginal tax rate is 42% because you make good money and live in canton where the taxman is thirsty, then the 15% loss is only a 9% loss on the dividend after tax.
I do not like to be exposed to US tax law through my ETF or investment. The 15% witholding tax is the price to pay to be completely shielded from sudden change in US tax law or inheritance problem.
3 Likes