$$$ KPO and CZM $$$: StashAway Withholding Tax Reimbursement FY 2018

Saturday, June 29, 2019

StashAway Withholding Tax Reimbursement FY 2018

Another year has passed since I last blogged about withholding tax reimbursement - StashAway Withholding Tax Reimbursement FY 2017.

If you are also a StashAway user, you would have received the email a few weeks back too. The breakdown can be found in your Transactions section.

The breakdown is too long to show above...

Since the portfolio did not change much, similar to last year, only 3 out of the 8 ETFs (TLT, TIP, and CWB) had withholding tax reimbursed. If you are wondering what's the reason:

For the withholding tax (WHT) reimbursement, we do not receive dividend reimbursement for all ETFs but only those that qualify under the QII (Qualified Interest Income) rule.

Only some of the dividend WHT from US domiciled funds (e.g. US government bonds) can be claimed back. As such, we did not receive any dividend reimbursement for XLK and XLY.

For further illustration, you may like to view the Dec 2018 iShares report on QII ETFs. Some examples of QII ETFs that StashAway invests in are 20+ Year Treasury Bond (TLT) and 10-20 Year Treasury Bond (TLH).

Our broker, Saxo, applies for the tax reimbursement on our behalf with the relevant tax authorities and we may not get all of the dividend WHT back. Just to share, the reclaiming of WHT will be done once a year, and we will notify you via email if you have any claimable WHT, which would be redistributed to your portfolio and automatically reinvested. 
- Kathleen

The total dividends received for the financial year 2018 including the withholding tax reimbursement which comes up to USD $154.46.

Breakdown by ETF

Breakdown by Month

The total fees charged by StashAway the financial year 2018 adds up to SGD $78.62 which seems pretty sustainable (dividends > fees). Do note that the dividends above are all in USD. Ideally, the portfolio should grow in the future even without the injection of fresh funds. On the other hand, if the fees > dividends, that would mean that the fees would eventually eat into the capital.

You can find the above information in our spreadsheet - KPO & CZM StashAway Portfolio VS STI ETF which I have also added to Our Portfolio page.

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