# Truewealth 3a Pillar **URL:** \ **Category:** Banks, Insurances & Third Pillar\ **Created:** [November 2, 2022, 9:31am UTC](https://forum.mustachianpost.com/t/truewealth-3a-pillar/9216 "2022-11-02T09:31:09Z")\ **Posts on this page:** 1\ **Showing post:** 15
**Author:** ![True\_Wealth](https://forum.mustachianpost.com/letter_avatar_proxy/v4/letter/t/ed655f/32.png) [@True\_Wealth](https://forum.mustachianpost.com/u/True_Wealth)\ **Post date:** [November 4, 2022, 8:10am UTC](https://forum.mustachianpost.com/t/truewealth-3a-pillar/9216/15 "2022-11-04T08:10:10Z")
Withholding taxes on dividends apply to ETFs on equities and REIT from the US and Japan. Generally, for US equities, a withholding tax of up to 30% applies. Thanks to the tax domicile of our ETFs, the withholding tax on these dividends is only 15%. We have computed the effective foregone dividend income for three risk profiles under the following assumptions: equity dividend yield 2% p.a. and REIT dividend yield 3.5% p.a. We find the following results (values in % of the total portfolio value): Foregone dividend income for - risk tolerance 2.5/10: 0.02% p.a. - risk tolerance 7.5/10: 0.10% p.a. - risk tolerance 9/10: 0.14% p.a. We are planning in the future to replace some of our ETFs with pension fund share classes of index funds for which this withholding tax can be further reduced to 0%. ![pic](https://forum.mustachianpost.com/uploads/default/original/2X/4/466519c15bb845c829585a95d1a58a4d28943b0a.png) --- _[View the full topic](https://forum.mustachianpost.com/t/truewealth-3a-pillar/9216)._