$$$ KPO and CZM $$$: StashAway Withholding Tax Reimbursement FY 2019

Friday, October 30, 2020

StashAway Withholding Tax Reimbursement FY 2019

Another year has passed since I last blogged about withholding tax reimbursement - StashAway Withholding Tax Reimbursement FY 2018.

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

You might notice that the withholding tax reimbursed was lesser compared to previous years. That's because only 2 of the ETFs (TIP and TLT) had withholding tax reimbursed. 

Refer to below for more information:
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 2019 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. 

The total dividends received for the financial year 2019 including the withholding tax reimbursement which comes up to USD $174.03.

Dividends Breakdown by ETF

Dividends Breakdown by Month

Fees Breakdown by Month

The total fees charged by StashAway the financial year 2019 adds up to SGD $48.00 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.

Anyway, if you are interested in signing up for StashAway, do use our referral link - KPO and CZM Referral Link. You will get $10,000 free management fees for 6 months and we will get $16!

If you want to extract those transactions information from StashAway, do take a look at this article - StashAway Transactions Parser.

You might be interested in these articles too:
- StashAway - September 2020 - $47,850.22
- StashAway Withholding Tax Reimbursement FY 2018
StashAway Withholding Tax Reimbursement FY 2017

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